9 Mar 2015
USD upside expected to continue – ANZ
FXStreet (Edinburgh) - Analysts at ANZ continue to see a Fed’s rate hike in June and a stronger dollar in the next periods.
Key Quotes
“The February NFP release was materially stronger than expected. NFPs rose by 295k and the unemployment rate fell to 5.5% from 5.7%”.
“Whilst earnings growth remains soft at 2.0% y/y, expectations are now firmly focused on a removal of the reference to “patience” at the March FOMC meeting”.
“That would confirm that the FOMC has moved away from date dependency in its forward guidance to data dependency”.
“If, as we expect, the activity data firms again in coming months, then the FOMC remains on course to begin normalising interest rates soon, probably at the June meeting”.
“In the interim, the USD can continue to take the strain for monetary tightening”.
Key Quotes
“The February NFP release was materially stronger than expected. NFPs rose by 295k and the unemployment rate fell to 5.5% from 5.7%”.
“Whilst earnings growth remains soft at 2.0% y/y, expectations are now firmly focused on a removal of the reference to “patience” at the March FOMC meeting”.
“That would confirm that the FOMC has moved away from date dependency in its forward guidance to data dependency”.
“If, as we expect, the activity data firms again in coming months, then the FOMC remains on course to begin normalising interest rates soon, probably at the June meeting”.
“In the interim, the USD can continue to take the strain for monetary tightening”.