Forex Flash: Dollar shows resilience – BBH
Brown Brothers Harriman analysts feel that the dollar has shown some resilience, with the week's price action highlighting the narrowing of the breadth of the dollars decline.
Elsewhere they note that the dollar bloc has generally not performed well in the recent move against the dollar and the Swiss Franc, not the Yen, has been the weakest currency this week. They also note the underlying resilience of the US economy in the face of the fiscal cliff in late 2012.
Looking at the price action, they comment that the dollar is trading firmly, and the official commentary this week from Europe's Juncker and Japan's Amari were more disruptive noise than a true signal. They feel that these mid-directed cues whipsawed short term participants and served to obscure what was really happening.
They write, "EURUSD fell back to $1.3370 after failing to break above the $1.34 level. USDJPY failed to hold above the 90.0 and is currently around 89.80. The dollar bloc is under performing, led by NZDUSD falling to 0.8350. Major fixed income markets are flat. The MSCI Asia Pacific index closed 1.2% higher but the rally has run out of steam in Europe. The Euro Stoxx index is flat, as are US equity futures."
Elsewhere they note that the dollar bloc has generally not performed well in the recent move against the dollar and the Swiss Franc, not the Yen, has been the weakest currency this week. They also note the underlying resilience of the US economy in the face of the fiscal cliff in late 2012.
Looking at the price action, they comment that the dollar is trading firmly, and the official commentary this week from Europe's Juncker and Japan's Amari were more disruptive noise than a true signal. They feel that these mid-directed cues whipsawed short term participants and served to obscure what was really happening.
They write, "EURUSD fell back to $1.3370 after failing to break above the $1.34 level. USDJPY failed to hold above the 90.0 and is currently around 89.80. The dollar bloc is under performing, led by NZDUSD falling to 0.8350. Major fixed income markets are flat. The MSCI Asia Pacific index closed 1.2% higher but the rally has run out of steam in Europe. The Euro Stoxx index is flat, as are US equity futures."
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