The numbers coming out of the United States were nothing short of fantastic.
Unlike any previous release, dynamics have changed in the markets.
For a large part of the week, the US Dollar was receiving a strong bid. There was some contributing factors such as negative data out of NZD and GBP, and the markets still considering the negative view point of the EURO where the ECB is seriously considering further QE..
The negative outlooks on several economies, combined with positive data out of the United States alone makes the USD very bullish, that's without even a rate hike on the table.
There is still room to argue that the Fed will not raise rates. Their reports clearly indicate that sufficient evidence of a move to target mandate inflation levels of 2% which is yet to be shown.
Nevertheless, we are once again moving towards a monetary policy divergent market place, where the US is still on track to raise rates where other countries are starting to show weakness and easing measures on the table. This provides a good bias for a long USD position regardless of whether the rate hike materialises or not.
Unlike any previous release, dynamics have changed in the markets.
For a large part of the week, the US Dollar was receiving a strong bid. There was some contributing factors such as negative data out of NZD and GBP, and the markets still considering the negative view point of the EURO where the ECB is seriously considering further QE..
The negative outlooks on several economies, combined with positive data out of the United States alone makes the USD very bullish, that's without even a rate hike on the table.
There is still room to argue that the Fed will not raise rates. Their reports clearly indicate that sufficient evidence of a move to target mandate inflation levels of 2% which is yet to be shown.
Nevertheless, we are once again moving towards a monetary policy divergent market place, where the US is still on track to raise rates where other countries are starting to show weakness and easing measures on the table. This provides a good bias for a long USD position regardless of whether the rate hike materialises or not.
