USD appears vulnerable in the near-term – Westpac

By FXStreet FXStreet (Edinburgh) – Richard Franulovich, Strategist at Westpac, sees a bumpy road for the greenback in the next few days.

Key Quotes

“USD trading poorly but may be pricing in too much growth pessimism, certainly that’s message from our US data surprise index which is on the cusp of a recovery”.

“That would match the observation that much of Q4’s softness was inventory driven, meanwhile three year highs for household savings, along with the steady fall in gasoline prices and mortgage rates should underpin healthier outcomes in H1
2016”.

“The Atlanta Fed’s Q1 Nowcast warns as much – it is very early days yet but their Q1 GDP growth estimate has risen from 1.2% to 2.5% so far in February”.

“The USD might also draw some support from Fed commentary next week – various speakers will underscore global and market volatility concerns but will also emphasise a “gradual” path for hikes”.
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Source:: FX Street