Potential for a shift in sentiment towards the USD - RBS

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, sees potential for a shift in sentiment towards the USD.



Key Quotes



"We continue to see EUR rates sliding and curve flattening weakening the EUR. BoE Governor Carney, in my view, gave a clear warning to the market to prepare for a rate hike sooner than currently priced."



"We suspect this posture shift may be mirrored at the Fed and may become apparent at the next FOMC meeting on 19 June. Rate rises are likely to come into clearer vision in the US soon and support the USD."



"We see opportunities to be short EUR and JPY and long USD and GBP to reflect yield developments."



"We see potential for a bigger shift in sentiment towards the USD since the market is currently still too focused on the short term outlook for rates, in my view. It is possible that a stronger USD against other majors helps it firm up more broadly in coming months."



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Forecast: Will Dollar and Equity Declines Evolve into Reversals?

  2. Forex News

    British Pound Forecast to Trade Higher on Fundamental Strength

  3. Forex News

    USD/JPY Eyes March Low - Japan to Post First Trade Surplus Since 2012

  4. Forex News

    Video: Risk Reversal a Greater Danger Than Dollar Tumble Next Week

  5. Forex News

    GBP/USD: Preview of a key week next week

Trading Center