FXStreet (Bali) - ANZ FX Strategists are betting for a strong USD bias in the period ahead.



Key Quotes



"We retain a strong USD bias in the period ahead. We expect volatility to show an increased tendency to behave in a step function."



"Volatility might be very low for a period, but when it rises, it rises abruptly and substantially. A portfolio that is overweight carry or momentum strategies, under-weighting valuation as a currency screen, or overweight assets in markets where liquidity can be one-sided, are likely to find this challenging."



"On this basis, we continue to expect peripheral currency weakness to be the dominant trend. We also, for the first time, expect the EUR to be part of this dynamic, if but only in the near-term. To the extent this EUR view is driven at least partly by the USD side of the equation, we remain distrustful of calls for broad EUR weakness on the crosses."



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Dismal 1Q U.S. GDP Report to Fuel Larger EUR/USD Rebound

  2. Forex News

    EUR/USD below parity by year-end – BTMU

  3. Forex News

    EUR/USD: rejected once again at 50% Fib level

  4. Forex News

    EUR/USD testing highs near 1.0960 on mixed German data

  5. Forex News

    SMA cross inflicts damage to EUR/USD chart

Trading Center