Forex Flash: Commodity and Emerging currencies to rise – Wells Fargo

Forex Flash: Commodity and Emerging currencies to rise â€" Wells Fargo

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Forex Flash: Commodity and Emerging currencies to rise Wells Fargo

FITITOL--> FXstreet.com (Barcelona) - Fed’s monetary policy announcement was neutral, with no particular suprising hint. Low rates should be kept until 2014 as already known. The greenback started lower today, but the poor confidence survey in the Eurozone triggered a risk aversion move, plunging riskier assets against the US Dollar.

US initial and continuing jobless claims disappointed investors, falling by 1000 to 38800 and rising by 3000 to 3.315M, respectively.

Tomorrow’s BoJ monetary policy announcement will be eyed with much expectation as general consensus points to easing measures.

Wells Fargo head of currency strategy Nick Bennenbroek bets on commodity and emerging currencies strength in the near term: “While we acknowledge that FX trading remains uncertain and somewhat erratic, the benign Fed stance combined with the probable Japanese monetary easing hints at a bias for gains in the commodity and emerging currencies over the near-term”.