Back
18 Sep 2014
USD set to extend its rally – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Jens Pedersen sees potential for further strength in the greenback.
Key Quotes
“USD gained substantially overnight and EUR/USD trades 0.7% lower this morning at 1.2860 following the Fed meeting last night, where the FOMC members’ projections for the Fed funds rate were moved higher”.
“The end-2017 projection shows a median projection of 3.75%. That's at least 100bp higher than market pricing, supporting the case for a further rally in the dollar as the US money market sooner or later will have to re-price the future path for the Fed funds rate”.
Key Quotes
“USD gained substantially overnight and EUR/USD trades 0.7% lower this morning at 1.2860 following the Fed meeting last night, where the FOMC members’ projections for the Fed funds rate were moved higher”.
“The end-2017 projection shows a median projection of 3.75%. That's at least 100bp higher than market pricing, supporting the case for a further rally in the dollar as the US money market sooner or later will have to re-price the future path for the Fed funds rate”.