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6 Jan 2014
Flash: US week ahead to support USD? - BTMU
FXstreet.com (Guatemala) - Lee Hardman, currency analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd,noted the economic data releases in the week ahead should continue reveal that the outlook for the US economy is strengthening.
Key Quotes:
The US economy appears have expanded above potential at an annualized pace of over 3.0% in the second half of 2013. As a result it is likely that the
release of the non-farm payrolls report for December in the week ahead will
reveal strong employment growth which should help to support a higher US
dollar”.
“Fed Chairman Bernanke struck a more positive note in a speech late last
week noting that “the combination of financial healing, greater balance in
the housing market, less fiscal restraint, and of course continued monetary
policy accommodation bodes well fro US economic growth in the coming
quarters”. “
“…He also noted that the Fed’s decision to taper QE “did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed”. The release of the latest minutes from the 17th-18th December FOMC meeting in the week ahead may provide further insight into the Fed’s decision to begin QE tapering and outlook for policy ahead. The gradual nature of QE tapering should help to dampen potential US dollar upside in the first half of this year”.
Key Quotes:
The US economy appears have expanded above potential at an annualized pace of over 3.0% in the second half of 2013. As a result it is likely that the
release of the non-farm payrolls report for December in the week ahead will
reveal strong employment growth which should help to support a higher US
dollar”.
“Fed Chairman Bernanke struck a more positive note in a speech late last
week noting that “the combination of financial healing, greater balance in
the housing market, less fiscal restraint, and of course continued monetary
policy accommodation bodes well fro US economic growth in the coming
quarters”. “
“…He also noted that the Fed’s decision to taper QE “did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed”. The release of the latest minutes from the 17th-18th December FOMC meeting in the week ahead may provide further insight into the Fed’s decision to begin QE tapering and outlook for policy ahead. The gradual nature of QE tapering should help to dampen potential US dollar upside in the first half of this year”.