Little yield support for a USD recovery – BNPP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Research Team at BNP Paribas, suggests that in the US focus will today be on the release of the January CPI report.

    Key Quotes

    “We expect headline inflation to accelerate to 1.2% y/y from 0.7% y/y but the dominant impact of base effects for this series is probably already well understood by the market and our forecast is below expectations, which implies we do not expect a significant boost to the USD.

    More broadly, we believe the USD will struggle to have a sustained recovery against the G10 funders as markets remain reluctant to rebuild Fed tightening expectations, with hawkish remarks from San Francisco Fed President Williams failing to make an impression on Thursday.

    Moreover we expect more ups and downs for the risk environment which implies that current account surplus currencies should be well-supported at the expense of deficit currencies.”
    For more information, read our latest forex news.

Share This Page

free forex signals