Research Team at BNP Paribas, suggests that more broadly the USD is struggling to rebound amid a backdrop of increasingly negative real rates. Key Quotes “Comments from Dallas Fed President Kaplan who argued that current data did not support an April rate hike fed into already very dovish Fed expectations, with the 2y yield falling below 70bp. We do expect some more encouraging news on the data front from retail sales and core CPI this week which could trigger a relief bounce over the coming days. However, any USD strength would likely be short-lived given the negative feedback loop from a stronger dollar to global risk sentiment. On Tuesday, the focus will remain on Fed speakers with appearances scheduled from Fed Presidents Harker, Williams and Lacker.” For more information, read our latest forex news.