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7 Jan 2015
EUR decline leads DXY to make a new high – DBS
FXStreet (Barcelona) - The DBS Group Team shares the weakness in EUR sent DXY rising to make a new high of 91.499, closing at highest levels since December 2005.
Key Quotes
“The pause in the USD’s rise lasted only a day. In spite of more falls in US eq¬uities and bond yields, the DXY (USD) index ended yesterday’s session at a new high of 91.499, its highest close since Dec 2005."
"The rise in DXY is propelled more by the weakness in its largest component, the euro. EUR/USD fell below 1.19 yesterday after punching below 1.20 the previous day.”
“While Fed hike expectations have receded with the 10Y US bond yield falling be¬low the Fed’s 2.0-2.5% inflation target, the European Central Bank (ECB) is still seen moving closer towards signaling some form of quantitative easing meas¬ures at its meeting on 22 Jan. More so if today’s CPI estimate for Eurozone fall below 0% in Dec14.”
“The upcoming Greek snap election on 25 Jan is viewed as an event risk for the euro.”
Key Quotes
“The pause in the USD’s rise lasted only a day. In spite of more falls in US eq¬uities and bond yields, the DXY (USD) index ended yesterday’s session at a new high of 91.499, its highest close since Dec 2005."
"The rise in DXY is propelled more by the weakness in its largest component, the euro. EUR/USD fell below 1.19 yesterday after punching below 1.20 the previous day.”
“While Fed hike expectations have receded with the 10Y US bond yield falling be¬low the Fed’s 2.0-2.5% inflation target, the European Central Bank (ECB) is still seen moving closer towards signaling some form of quantitative easing meas¬ures at its meeting on 22 Jan. More so if today’s CPI estimate for Eurozone fall below 0% in Dec14.”
“The upcoming Greek snap election on 25 Jan is viewed as an event risk for the euro.”