Week Ahead by Crédit Agricole: FOMC, BoJ, RBNZ, Buy USD, Sell JPY & Commodity FX "Risk sentiment by the end of the week has stabilised, mainly in reaction to ECB President Draghi making a case of considering additional policy action as soon as March. Even if China-related growth uncertainty is likely to keep cross market volatilities high, further stabilising conditions cannot be excluded in the short-term. This is especially true as ...
Credit Agricole - Where To Sell Bounces In the very short-term further position-squaring related upside risk cannot be excluded as tighter monetary conditions as driven by the Fed and intact uncertainty as related to China may keep risk sentiment unstable. Most recent China PMI releases keep investors’ growth expectations strongly muted.However, from a broader angle, we expect risk sentiment to stabilize anew. This is mainly due to ...
It appears that well supported BoE rate expectations continue to keep currency downside limited from current levels. In that respect it must be noted that medium-term inflation expectations, as measured by 5Y forward breakeven rates, remain close to multiweek highs. Unless forward looking indicators suggest moderating price developments it appears unlikely that the BoE will turn more cautious anytime soon. ...