FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that there are unambiguous signs that after recovering from the contractionary fluke in Q1, the US economic momentum has carried into Q3.

Key Quotes

Economic conditions consistent with the Fed's mandates are being approached."

"Various price measures have firmed, and although the labor market may not be healthy ("significant under-utilization" is still evident, according to the FOMC statement), it is on the mend. This saw the US 10-year bond yields recovered from around 2.45% to 2.60%, the highs since the start of the month."

"The equity markets turned down, and the magnitude of the losses inflicted technical damage. The dollar appears to be breaking out against both the euro and yen."

"This was in many ways what investors had generally expected this year. The implied volatility in the capital markets rose."

"Volume appears to have picked up as well. Turnover on the NYSE moved above its 100-day moving average on July 31 and August 1."


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Forex pairs in this Article » EUR/USD, USD/JPY

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