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26 Jun 2013
Flash: USD flat against majors - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that backed by supportive US data releases (durable goods orders, housing data, and consumer confidence), USD ended flat to slightly firmer against most of the G10 currencies.
Elsewhere, he notes that EUR/USD was also capped after the ECB’s Draghi indicated that an exit was still “distant”. Earlier he adds that, amid a continued meltdown in Chinese equities, the PBOC Tuesday finally sought to assuage market concerns by stating that it would ensure liquidity support where it deemed suitable and “guide market interest rates to reasonable levels”. Ng feels that the soothing remarks from the Chinese authorities managed to soothe market nerves, with domestic equities (Shanghai Composite) bouncing off deep intra-day lows to end just slightly softer after falling more than 5% during the session. Moving back to the dollar story, he comments that investors may continue to attempt to square the incoming US data stream with the schedule that Bernanke had laid out last week at the FOMC. He writes, “In addition, any hints of discord or dissension within the Fed may also unravel the strong dollar narrative at the very least introduce further volatility.
Elsewhere, he notes that EUR/USD was also capped after the ECB’s Draghi indicated that an exit was still “distant”. Earlier he adds that, amid a continued meltdown in Chinese equities, the PBOC Tuesday finally sought to assuage market concerns by stating that it would ensure liquidity support where it deemed suitable and “guide market interest rates to reasonable levels”. Ng feels that the soothing remarks from the Chinese authorities managed to soothe market nerves, with domestic equities (Shanghai Composite) bouncing off deep intra-day lows to end just slightly softer after falling more than 5% during the session. Moving back to the dollar story, he comments that investors may continue to attempt to square the incoming US data stream with the schedule that Bernanke had laid out last week at the FOMC. He writes, “In addition, any hints of discord or dissension within the Fed may also unravel the strong dollar narrative at the very least introduce further volatility.