Potential cushions for the greenback - BBH

By FXstreet.com | August 04, 2014 AAA

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman commented around the recent shift in greenback.



Key Quotes



"Another way of asking the question is whether the markets are in new trends or poised to consolidate. Our reading of the technicals favors the latter scenario."



"The US economy and inflation are not consistent with 10-year yields below 2.5%. As yields fall below there, buying dries up and shorts are enticed."



"This caps the rallies. The prospects for the ECB's TLTRO next month and the possibility that Japan provides more stimulus may cushion any significant dollar pullback."



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