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Stabilizing sentiment should help USD - BNP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - According to BNP Paribas FX Strategy Team, the market could be vulnerable to a fairly quick repricing on Fed expectations once global sentiment improves, which should be USD positive.

    Key Quotes

    "A light US data calendar early in the week is not conducive to markets shifting away from China concerns although comments from Atlanta Fed’s Lockhart and Dallas Fed’s Kaplan on Monday were noteworthy."

    "Lockhart said that he did not see immediate implications for the US economy and the Fed from the recent market volatility although he did add he is ready to revise his view “if the volatility continues for several weeks”. Kaplan said that 4 rate hikes this year is a projection not a promise, but noted that the central bank will have enough information to make a decision in March."

    "Until the first significant US data comes on Friday, with the release of December retail sales and IP, the main focus should remain on the busy schedule of Fed speakers including Vice Chair Fischer and Richmond Fed President Lacker today."

    "While the market is currently not taking Fed tightening signals at face value, should the speakers highlight that their tightening views have not changed, we think the market could be vulnerable to a fairly quick repricing on Fed expectations once global sentiment improves."
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