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12 Jun 2013
Flash: Its a market with the USD bulls in charge - HSBC
FXstreet.com (Barcelona) - The USD is in the midst of a powerful rally, says David Bloom, FX strategist at HSBC.
According to Bloom, traders should not be misled by the excessive fixation on EUR/USD as in reality, "the USD is gaining against nearly all world currencies" Bloom notes.
In view of the strategist, this USD bull move "is the combination of currency wars, tapering, a china slowdown, and the competitive advantage the US may have due to shale gas."
The temporary appreciation of the EUR vs the USD in recent trading is just a rare disturbance, and once "the USD rally picks up steam it will eventually rally against the EUR and the picture of the USD bull run will truly come into focus" Bloom concludes.
According to Bloom, traders should not be misled by the excessive fixation on EUR/USD as in reality, "the USD is gaining against nearly all world currencies" Bloom notes.
In view of the strategist, this USD bull move "is the combination of currency wars, tapering, a china slowdown, and the competitive advantage the US may have due to shale gas."
The temporary appreciation of the EUR vs the USD in recent trading is just a rare disturbance, and once "the USD rally picks up steam it will eventually rally against the EUR and the picture of the USD bull run will truly come into focus" Bloom concludes.