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13 Nov 2014
Allow the US to get “hot”before tightening - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted Dudley’s recent remarks in respect to the timings of a rate hike in the USA.
Key Quotes:
"The dollar is trading with a softer tone, perhaps in part to Dudley’s comments about the risks of premature tightening.
“He spoke earlier today in Abu Dhabi, and reiterated his view that there are benefits to letting the economy run “slightly hot” before tightening."
"Still, we do not see anything particularly new in his latest comments, and suspect that today’s price action is due more to the consolidative backdrop in the markets”.
Key Quotes:
"The dollar is trading with a softer tone, perhaps in part to Dudley’s comments about the risks of premature tightening.
“He spoke earlier today in Abu Dhabi, and reiterated his view that there are benefits to letting the economy run “slightly hot” before tightening."
"Still, we do not see anything particularly new in his latest comments, and suspect that today’s price action is due more to the consolidative backdrop in the markets”.