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2 Dec 2014
Greenback back in control - TDS
FXStreet (Guatemala) - Analysts at TD Securities noted that the USD took a beating yesterday, as a bounce in commodity prices but today, they noted, things have reversed.
Key Quotes:
“Crude oil in particular – triggered a retracement of the sharp currency moves observed in the latter half of last week”.
“Other asset classes also suffered some back-paddling of their own. US Treasuries sold off markedly, with the 5-year yield jumping 8 bps from their intraday lows to a close around 1.53%. Equities also closed on the red”.
“Today we are watching the same movie all over again, but in reverse. Commodities are down, Treasury yields modestly lower, and the USD dominating in the FX space”.
“Absent any major data releases during the NA session, price action in the commodity space, headlines from central bankers’ remarks, and flows will have the commanding voice”.
“Provided volatility in the former eases off a bit, we should see narrower moves today, as the market will be waiting for the ADP private payrolls report and the employment subcomponent of the ISM Non-Manufacturing index tomorrow to better handicap the US Non-farm payrolls ahead of Friday’s release”.
“Against this backdrop, we would expect to see EUR/USD contained within a 1.2400/1.2500 range and USD/JPY trading between the low 118s and low 119s, with risks biased towards a stronger USD”.
Key Quotes:
“Crude oil in particular – triggered a retracement of the sharp currency moves observed in the latter half of last week”.
“Other asset classes also suffered some back-paddling of their own. US Treasuries sold off markedly, with the 5-year yield jumping 8 bps from their intraday lows to a close around 1.53%. Equities also closed on the red”.
“Today we are watching the same movie all over again, but in reverse. Commodities are down, Treasury yields modestly lower, and the USD dominating in the FX space”.
“Absent any major data releases during the NA session, price action in the commodity space, headlines from central bankers’ remarks, and flows will have the commanding voice”.
“Provided volatility in the former eases off a bit, we should see narrower moves today, as the market will be waiting for the ADP private payrolls report and the employment subcomponent of the ISM Non-Manufacturing index tomorrow to better handicap the US Non-farm payrolls ahead of Friday’s release”.
“Against this backdrop, we would expect to see EUR/USD contained within a 1.2400/1.2500 range and USD/JPY trading between the low 118s and low 119s, with risks biased towards a stronger USD”.