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15 Jan 2015
USD bulls struggling as commodities remain soft - DBS
FXStreet (Barcelona) - The DBS Group Team notes that USD bulls have been struggling as worries from weak commodities keep the US equity and bond markets concerned.
Key Quotes
“EUR/USD had not been able to close below 1.1770 in the past five sessions. USD bulls have been struggling with the recent fall in USD/JPY below 120 and the inability of the US equity and bond markets to shake off worries from weak commodities.”
“Last Friday’s jobs report also dampened inflation expectations when growth in average hourly earnings fell to 1.7% YoY in Dec14, its slowest rise since Oct12. This has offset some of the earlier optimism from top US policymakers that lower oil prices benefitted US consumers.”
“The Fed signalled in the FOMC minutes for the 17 Dec meeting that there would be no rate rises in at least the next couple of meetings. Yesterday’s Beige Book also noted some concerns from the fall in oil prices. While it is not unusual for markets to diverge, it is difficult for one market to ignore the risks when the other plunges.”
Key Quotes
“EUR/USD had not been able to close below 1.1770 in the past five sessions. USD bulls have been struggling with the recent fall in USD/JPY below 120 and the inability of the US equity and bond markets to shake off worries from weak commodities.”
“Last Friday’s jobs report also dampened inflation expectations when growth in average hourly earnings fell to 1.7% YoY in Dec14, its slowest rise since Oct12. This has offset some of the earlier optimism from top US policymakers that lower oil prices benefitted US consumers.”
“The Fed signalled in the FOMC minutes for the 17 Dec meeting that there would be no rate rises in at least the next couple of meetings. Yesterday’s Beige Book also noted some concerns from the fall in oil prices. While it is not unusual for markets to diverge, it is difficult for one market to ignore the risks when the other plunges.”