Portfolio flows had been the main driving force behind dollar strength. During the summer months we see a slowdown in financial market activity, and this reduces the flows into the U.S. and hence reduces support for the dollar. |
Speculation regarding a ECB rate hike is likely to start building further, especially coming on top of the more hawkish comments we have been seeing from the ECB officials, so that will be euro supportive, |
Speculation regarding a ECB rate hike is likely to start building further, especially coming on top of the more hawkish comments we have been seeing from the ECB officials, so that will be euro supportive. |
The backdrop for the dollar is negative. G-7 comments were negative while the foreign reserves issue has come back into focus and is going to be a long term negative factor. |
The dollar is coming under pressure across the board, following the FOMC because of the dissenter, |
The dollar is coming under pressure across the board, following the FOMC because of the dissenter. |
The dollar is still the driving force as all the evidence points to a faster recovery in the United States than anywhere else, |
The euro is under pressure already today and this is adding to its problems. |
The Fed will be pausing after raising rates in May. Sterling is going to hold up reasonably well in the near term. |
The market is assuming that the ECB won't be hiking rates in the next couple of months. The way is open for the euro to decline further. |
The market is now looking for some further rate hikes in the U.S. and that is going to keep the dollar supported in the near-term. |
The market is still concerned about the interest rate and whether the Fed is on a possible pause. |
The message from officials is that the impact from Katrina will be limited. |
The minutes are a very important event today, with any adjustment suggesting that the peak in rates is close, as we believe it is, seen putting the dollar under further pressure. |
The news from the U.S. continues to come out encouraging for the dollar, |