USD: No appeal here - Westpac

USD offers next to no appeal, risks building for a test of the lower side of its two month 88-91 range, according to Richard Franulovich, Research Analyst at Westpac.

Key Quotes

“April earnings (+2.7% ann) and CPI (+0.2% m/m) confirm benign trends are intact, weaker surveys signal CAPEX plans may have peaked while recent ructions in financial markets have brought to an end the persistent trend of easing financial conditions. The threat of a more hawkish Fed remains the USD’s best last hope yet that risk seems remote given the aforementioned.”

“USD likely remains stuck at lower levels for longer.”