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15 May 2015
Risk to long-held USD bullish stance - RBS
FXStreet (Bali) - As Brian Daingerfield, FX Trading Strategist at RBS, notes, further disappointments in US fundamentals over the spring is a risk to the bank's long-held bullish USD stance.
Key Quotes
"A softer-than-expected start to the second quarter activity data puts further pressure on USD longs, and the risks of a slower, more choppy improvement in US indicators over the spring is a risk to our long-held bullish USD stance. The data released today are unlikely to shake that narrative."
"Industrial production is due in the US and the underlying manufacturing production data should be in focus given the faltering momentum in manufacturing. Weakness in utilities spending that weighed on headline IP in March may have softened again in April. While that may lead to the headline IP index declining outright, our economists look for underlying manufacturing to rise by 0.3% m/m, above the listed Bloomberg consensus."
"While manufacturing may prove to be a positive, consumer confidence is also released for May and could decline slightly, in line with other indicators of confidence that have dipped recently. Rising fuel prices over the past month could have weighed on the consumer outlook in May."
Key Quotes
"A softer-than-expected start to the second quarter activity data puts further pressure on USD longs, and the risks of a slower, more choppy improvement in US indicators over the spring is a risk to our long-held bullish USD stance. The data released today are unlikely to shake that narrative."
"Industrial production is due in the US and the underlying manufacturing production data should be in focus given the faltering momentum in manufacturing. Weakness in utilities spending that weighed on headline IP in March may have softened again in April. While that may lead to the headline IP index declining outright, our economists look for underlying manufacturing to rise by 0.3% m/m, above the listed Bloomberg consensus."
"While manufacturing may prove to be a positive, consumer confidence is also released for May and could decline slightly, in line with other indicators of confidence that have dipped recently. Rising fuel prices over the past month could have weighed on the consumer outlook in May."