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15 Apr 2015
September hike still on the cards, USD remains a buy on dips – InvestingBetter
FXStreet (Barcelona) - Alpesh Patel of InvestingBetter, comments that the US economic data yesterday didn’t paint a weak picture for the economy, and thus maintains a September rate hike forecast while suggesting to buy any USD dips.
Key Quotes
“An interesting twist of events in the currency markets during the past 24 hours as the Retail Sales report from the US didn’t exactly thrill investors and traders. The consumer spending report came out slightly weaker than expected and as a result the US Dollar had to give back some of its recent gains against the other major currencies. However the more important question is whether this development will change Fed’s outlook to hike rates in the next couple of months.”
“We think that such a conclusion would be premature at this time and the actual report didn’t show any particular weakness, just not the strength that was eyed before the release.”
“We believe that the Fed is on schedule to raise the rates and we have mentioned that we regard the September meeting as the most likely date.”
“So from a fundamental point of view any correction in the US Dollar should be considered as opportunities to buy the currency at lower levels.”
Key Quotes
“An interesting twist of events in the currency markets during the past 24 hours as the Retail Sales report from the US didn’t exactly thrill investors and traders. The consumer spending report came out slightly weaker than expected and as a result the US Dollar had to give back some of its recent gains against the other major currencies. However the more important question is whether this development will change Fed’s outlook to hike rates in the next couple of months.”
“We think that such a conclusion would be premature at this time and the actual report didn’t show any particular weakness, just not the strength that was eyed before the release.”
“We believe that the Fed is on schedule to raise the rates and we have mentioned that we regard the September meeting as the most likely date.”
“So from a fundamental point of view any correction in the US Dollar should be considered as opportunities to buy the currency at lower levels.”