UBS Strategist Gareth Berry informs, on a research note sent to clients, the latest USD outflows, following the Fed decision no to taper in September. Key Quotes "We registered the strongest one-day buying of EURUSD in three months of trading. Elsewhere, yen turnover sank back to subdued levels, sapping the momentum of the latest USDJPY upswing." "The Singapore dollar attracted the greatest inflows over our books as stresses in neighbouring EM economies subsided on falling US yields. There was only modest respite for BRL though, and our clients remain wary of TRY too despite the latest diplomatic efforts in Syria." "Dollar turnover over the week as a whole was nothing spectacular, but what stood out was the intensity of dollar selling from the leveraged community post-FOMC. The lack of reaction from other client segments suggests positioning there was very light going into the announcement, and is symptomatic of a lack of conviction more generally." USDCHF Traders will be focused on US home price indices , Consumer Sentiment this week. Given the outlook by most technical analysts that the US Dollar Index (DXY) has more downside work to do (down to at least 79) after the current consolidation runs its course, the USDCHF should share that same short-term bearish outlook. Technical outlook for USDCHF is most likely going to make its way down to the 0.8995 to 0.9016 range before any substantial support is found. The short-term resistance comes in at 0.9127 and is followed up by 0.9233. News to note today: 0800H GMT EUR German Ifo Business Climate 1230H GMT CAD Core Retail Sales month on month 1400H GMT USD Conference Board Consumer Confidence 2245H GMT NZD Trade Balance
Posted on: Tue, 24 Sep 2013 07:13:15 +0000
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