USD outlook remains constructive – Westpac

By FXStreet FXStreet (Edinburgh) – In the view of strategists at Westpac, the perspective for the greenback remains constructive in the near term.

Key Quotes

“A few caveats for the USD right here: 1) pockets of questionable data (ie a sub-50 ISM) amid still decent jobs; 2) DXY’s failure at the key 100 tech level; 3) year-end position squaring pressures; and 4) likely dovish Yellen guidance at this week’s lift-off”.

“Would not get too carried away though – a follow-up Fed hike could come as soon as March, substantially sooner than discounted (2016Q3), aided and abetted by favourable oil price base-effects that will lift inflation almost a percentage point and a potentially mild-winter if long range forecasts are to be believed, flattering Q1 growth. Sticking with a constructive 3mth USD outlook”.
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Source:: FX Street