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20 Apr 2015
Credit Agricole: USD rally only sees a pause, not a reversal – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that a September hike from Fed is still on the cards, and the current USD softness is only a pause, and not a sign of reversal.
Key Quotes
“Uncertainty about the start of the Fed tightening cycle lingers with recent US data not conclusive enough to support the case for an early stimulus removal. Our call remains for lift-off in September and we maintain our constructive outlook for the dollar over medium-term.”
“However, with the Fed still divided on the timing of lift-off and the concerns about the economic impact from strong USD, consolidation in the USD could persist in the early stages of Q2. We think that stronger USD data is needed to shift the market views.”
“With no Fed speakers and only second-tier data this week, markets could continue to pare bets on aggressive USD-appreciation against risk-correlated and commodity currencies.”
“We expect greater USD resilience against low-yielders like JPY, CHF and EUR but higher-yielders could maintain their edge until the April employment report next month.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Uncertainty about the start of the Fed tightening cycle lingers with recent US data not conclusive enough to support the case for an early stimulus removal. Our call remains for lift-off in September and we maintain our constructive outlook for the dollar over medium-term.”
“However, with the Fed still divided on the timing of lift-off and the concerns about the economic impact from strong USD, consolidation in the USD could persist in the early stages of Q2. We think that stronger USD data is needed to shift the market views.”
“With no Fed speakers and only second-tier data this week, markets could continue to pare bets on aggressive USD-appreciation against risk-correlated and commodity currencies.”
“We expect greater USD resilience against low-yielders like JPY, CHF and EUR but higher-yielders could maintain their edge until the April employment report next month.”
This content has been provided under specific arrangement with eFXnews.