Feb 28, 2013
Forex Flash: USD index targets 1 month high of 83.5 – Westpac
The USD index has edged for a few weeks, however in the wake of the sharp deterioration in EZ financial conditions, and linked to that the resurgence in EZ political risk there exists a definitive threat to this trend. According to the Westpac Strategy Team, “A USD supportive event risk mosaic next week, including a likely dovish Draghi press conference, will likely minimal progress towards the formation of a governing coalition in Italy and the headlong rush into the sequester, should boost the USD yet further. Our fresh 1 month target is for a run towards 83.5, just shy of the July 2012 highs.”
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