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3 Dec 2014
USD resumed its uptrend yesterday – DBS
FXStreet (Barcelona) - According to the DBS Research Team, USD resumed its uptrend yesterday after Monday’s correction, leading EUR/USD to retreat towards 1.2350 and USD/JPY to form a new high at 119.28 levels.
Key Quotes
“Contrary to expectations, yesterday did not see a follow through on the USD’s correction seen on Monday. The USD resumed its uptrend when Europe opened yesterday after languishing during most of the Asian session.”
“The DXY (USD) index hit a high of 88.668 and closed at 88.647 yesterday. While these levels were still below the intra-day peak of 88.708 seen in June 2010, yesterday’s close was highest since March 2009.”
“EUR/USD retreated from 1.25 and fell back towards its 1.2350 low seen on 7 and 24 Nov, while USD/JPY edged up to a fresh 7-year high at 119.28 and closing in on its psychological 120 level.“
“The main lift for the USD came from Fed Vice Chairman Stanley Fischer. In believing that lower oil prices would boost consumer spending and be very good for the US economy, Fischer says that the Fed was still on track to raise rates and normalize monetary policy next year. Fischer also gave the thumbs up to the Bank of Japan’s second round of quantitative and qualitative easing which he considered as appropriate and a “good move”. While he made no mention of European Central Bank, he urged Germany to boost demand and lead growth in the Eurozone.”
Key Quotes
“Contrary to expectations, yesterday did not see a follow through on the USD’s correction seen on Monday. The USD resumed its uptrend when Europe opened yesterday after languishing during most of the Asian session.”
“The DXY (USD) index hit a high of 88.668 and closed at 88.647 yesterday. While these levels were still below the intra-day peak of 88.708 seen in June 2010, yesterday’s close was highest since March 2009.”
“EUR/USD retreated from 1.25 and fell back towards its 1.2350 low seen on 7 and 24 Nov, while USD/JPY edged up to a fresh 7-year high at 119.28 and closing in on its psychological 120 level.“
“The main lift for the USD came from Fed Vice Chairman Stanley Fischer. In believing that lower oil prices would boost consumer spending and be very good for the US economy, Fischer says that the Fed was still on track to raise rates and normalize monetary policy next year. Fischer also gave the thumbs up to the Bank of Japan’s second round of quantitative and qualitative easing which he considered as appropriate and a “good move”. While he made no mention of European Central Bank, he urged Germany to boost demand and lead growth in the Eurozone.”