DXY seen lower, could test 92.00

Richard Franulovich, Strategist at Westpac, believes the US Dollar Index could grind lower towards the 92.00 handle.

Key Quotes

“Biased to play for more USD downside in coming weeks, a retest of the 16mth 92.0 lows set in early May on the cards”.

“A cautiously hopeful Fed hardly inspires, while their meaningfully more dovish forward guidance via the dots should raise alarm bells for long term USD bulls”.

“St Louis Fed Bullard’s revelation that his dots call for one hike this year and then no further hikes through to end-2018 should not dismissed out of hand as a fringe view”.

“He is a voter who has a history of thought leadership at the Fed and his new approach to assessing the economy implies the US is locked in a slow growth / low productivity regime”.