USD faces consolidation ahead of further gains – TDS

By FXStreet FXStreet (Edinburgh) – FX Strategist at TD Securities Ned Rumpeltin sees the greenback going through a consolidation pattern ahead of another leg higher.

Key Quotes

“All else equal, Friday’s employment data should set a generally positive tone for the USD at the start of the week. That said, we have taken note of the lack of follow through gains”.

“Indeed, the post-data reversal seen against the likes of EUR and JPY may suggest the USD is in need of some further consolidation before it is ready to take another step forward”.

“Against this backdrop, interest rate differentials appear broadly consistent with current USD valuations overall, suggesting some degree of two-way risk for now. This leaves us on a tactical footing and in favour of a hit-and-run style rather than looking for major trends to emerge at the start of 2016”.
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Source:: FX Street