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16 Mar 2015
The greenbacks amazing momentum - BBH
FXStreet (Guatemala) - The dollar's advance accelerated since the end of February. Analysts at Brown Brothers Harriman explained that the dollars momentum has surprised everyone.
Key Quotes:
"Pullbacks continue to be shallow. The move appears to have taken a life on of its own. Consider last week, as the euro slumped more than 3%, sterling more than 2%, and the dollar-bloc more than 1%, US yields fell sharply."
"The US 10-year yield fell 15 bp. It has completed retraced the increase spurred by the strong jobs data on March 6. The yield the December Fed funds futures contract fell 7 bp to 51.5 bp. It settled at 49.5 bp the day before the employment report."
"The magnitude of the slide in the currencies (leaving aside the yen) has extended the technical condition. If support is to designate the price at which demand is forthcoming, it is difficult to meaningfully discuss technical support when many of the major currencies have not seen these levels in many years."
"If resistance denotes where supply is triggered, the technical indicators may be more helpful here. Euro resistance is seen in the $1.0640-$1.0720 area. Aggressive bears may try their hand near $1.0600, partly on ideas that euro bounces remain limited in time and magnitude."
Key Quotes:
"Pullbacks continue to be shallow. The move appears to have taken a life on of its own. Consider last week, as the euro slumped more than 3%, sterling more than 2%, and the dollar-bloc more than 1%, US yields fell sharply."
"The US 10-year yield fell 15 bp. It has completed retraced the increase spurred by the strong jobs data on March 6. The yield the December Fed funds futures contract fell 7 bp to 51.5 bp. It settled at 49.5 bp the day before the employment report."
"The magnitude of the slide in the currencies (leaving aside the yen) has extended the technical condition. If support is to designate the price at which demand is forthcoming, it is difficult to meaningfully discuss technical support when many of the major currencies have not seen these levels in many years."
"If resistance denotes where supply is triggered, the technical indicators may be more helpful here. Euro resistance is seen in the $1.0640-$1.0720 area. Aggressive bears may try their hand near $1.0600, partly on ideas that euro bounces remain limited in time and magnitude."