Week Ahead: Will Divergence FX Trade Stage A Comeback Into FOMC & BoJ? "We think that investors will revisit the topic of policy divergence ahead of the April FOMC meeting. Despite recently disappointing activity data, we expect the policy statement to present a more balanced outlook for the economy and inflation than in March, supported by the recent recovery in commodity prices and the improvement in global financial conditions. To ...
Nothing To Fear Ahead Of Yellen And The Lunar New Year - Crédit Agricole What we’re watching USD – "Next week’s Congressional testimony by Fed Chair Yellen will be key in driving the USD and risk sentiment further. We do not expect a case of further falling rate expectations to be made here." SEK – "Although the Riksbank is likely to hold off from further easing next week, a dovish rhetoric should keep easing ...
This Will Put A Floor Below The USD; Buy Dips - Credit Agricole Risk sentiment has been improving further in Asia with most stock market indices trading higher at the time of writing. Although yesterday’s FOMC minutes confirmed that many central bank members expect a lift-off later this year, investors’ rate expectations remain capped. This is due to both the minutes showing that officials discussed the impact of a stronger ...
USD: Bullish "We stick to our bullish USD view. Recent comments from Fed Governor Lockhart suggest that September is still very much in play, and as markets bring the timing of the first hike forward, this should support USD." EUR: Bearish "The EUR has been difficult to trade recently given that European stories such as Greece or the ECB have gone away from the market’s focus. Instead we expect EURUSD to trade lower on more ...
"USD: Increasing Sensitivity to Inflation. Neutral We remain medium-term USD bulls, but we continue to believe USD will struggle in the near term. The FOMC meeting this week has changed the near-term outlook as a more dovish than expected Fed has made front end yield differentials less USD supportive. We believe inflation readings will have more importance with employment bouncing back but core inflation remaining low. Should inflation start materially ...
Recent Comments