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

    Video: Don’t Set Up for the Dollar, Euro and Equity Breaks Just Yet

  2. Forex News

    Greek political aftermath of referendum - TDS

  3. Forex News

    IMF Offers Bleak Outlook for Greece; Further Debt Writeoff May Be Needed

  4. Forex News

    EUR/USD traders get set for Greek referendum and showdown

  5. Forex News

    EUR/USD on the Greece referendum: bearish bias - BTMU

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!