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14 Jan 2015
USD might gain further strength in the near-term – HSBC
FXStreet (Barcelona) - According to HSBC Bank, USD might gain further strength in the near term, but at a slower pace, expecting the Dollar to remain supported through the 28th January FOMC meeting.
Key Quotes
“We expect further USD gains in the near-term, but the pace is likely to be slower than has been evident in the first days of January. We expect USD gains to be most evident against the EUR, but a push higher through 120.00 is likely for USD-JPY. GBP-USD is expected to consolidate above 1.5000.”
“We expect the USD to be supported by the nature of the debate in the run-up to the 28 January FOMC meeting. Where the market is wondering how much easing the ECB is about to deliver, the market debate about the Fed will be whether the word “patient” (and the associated promise of inaction for two meetings) is retained. So for the USD, the FOMC outcome could be neutral or hawkish. For the ECB and possibly the BoJ, it’s a question of how dovish they might be. Buy the USD.”
Key Quotes
“We expect further USD gains in the near-term, but the pace is likely to be slower than has been evident in the first days of January. We expect USD gains to be most evident against the EUR, but a push higher through 120.00 is likely for USD-JPY. GBP-USD is expected to consolidate above 1.5000.”
“We expect the USD to be supported by the nature of the debate in the run-up to the 28 January FOMC meeting. Where the market is wondering how much easing the ECB is about to deliver, the market debate about the Fed will be whether the word “patient” (and the associated promise of inaction for two meetings) is retained. So for the USD, the FOMC outcome could be neutral or hawkish. For the ECB and possibly the BoJ, it’s a question of how dovish they might be. Buy the USD.”