Back
28 Nov 2013
Flash: USD supported on tapering implications - Rabobank
FXstreet.com (London) - Jane Foley, strategist at Rabobank said, yesterday, the market chose to view US economic data release as meaning that the Fed could taper its QE policy in the coming months.
Key Quotes:
“The USD therefore found some support, though EUR/USD remains at elevated levels”.
“Next week’s releases of US payrolls data will offer the market more insight into the chances of a reduction of Fed accommodation and the prospects for the USD”.
“Currently the market expects the Nov non-farm payrolls number to register a gain of 183K”.
“We would argue that this number would not be sufficient to significantly reduce the Fed’s concerns over the plight of jobless Americans”.
“This implies a dovish Fed and a soft USD for longer. Until the market is sure that Fed tapering is almost upon us, the risk is that EUR/USD will remain firm and that risks of slow growth and disinflation in Europe will remain prominent”.
Key Quotes:
“The USD therefore found some support, though EUR/USD remains at elevated levels”.
“Next week’s releases of US payrolls data will offer the market more insight into the chances of a reduction of Fed accommodation and the prospects for the USD”.
“Currently the market expects the Nov non-farm payrolls number to register a gain of 183K”.
“We would argue that this number would not be sufficient to significantly reduce the Fed’s concerns over the plight of jobless Americans”.
“This implies a dovish Fed and a soft USD for longer. Until the market is sure that Fed tapering is almost upon us, the risk is that EUR/USD will remain firm and that risks of slow growth and disinflation in Europe will remain prominent”.