5 Sep 2013
EUR/USD value set to deteriorate near-term - Reuters poll
FXstreet.com (Barcelona) - The U.S. dollar is set to strengthen in the near-term should the Fed start tapering its bond buying programme this Sept, a Reuters poll found on Wednesday.
The latest Reuters poll, which comprises around 60 strategists, also suggests cautious is necessary from now on when trading the Euro, in anticipation of renewed Euro debt crisis jitters. 39 of 54 forecasters in the poll favour more downside near term.
"We are positive on the dollar across the board, and that strength has already been seen in a quite convincing way against a lot of the more vulnerable emerging market currencies that operate with large current account deficits," said Tom Levinson, foreign exchange strategist at ING Financial Markets, cited by Yati Himatsingka from Reuters.
"But we increasingly think that over time as the Fed story evolves, the dollar will improve far more impressively against some of those stubbornly resilient major currencies, the yen, the euro, the Canadian dollar" Levinson added.
Himatsingka notes: "The last nine Reuters polls of forecasters taken since June have concluded taper will start this month and U.S. Treasury yields have been rising in anticipation."
In view of Mitul Kotecha, global head of foreign exchange strategy at CA-CIB, "A lot depends on the amount of tapering. If the Fed only begins tapering by a small amount the impact on the currencies will be smaller."
The latest Reuters poll, which comprises around 60 strategists, also suggests cautious is necessary from now on when trading the Euro, in anticipation of renewed Euro debt crisis jitters. 39 of 54 forecasters in the poll favour more downside near term.
"We are positive on the dollar across the board, and that strength has already been seen in a quite convincing way against a lot of the more vulnerable emerging market currencies that operate with large current account deficits," said Tom Levinson, foreign exchange strategist at ING Financial Markets, cited by Yati Himatsingka from Reuters.
"But we increasingly think that over time as the Fed story evolves, the dollar will improve far more impressively against some of those stubbornly resilient major currencies, the yen, the euro, the Canadian dollar" Levinson added.
Himatsingka notes: "The last nine Reuters polls of forecasters taken since June have concluded taper will start this month and U.S. Treasury yields have been rising in anticipation."
In view of Mitul Kotecha, global head of foreign exchange strategy at CA-CIB, "A lot depends on the amount of tapering. If the Fed only begins tapering by a small amount the impact on the currencies will be smaller."