1. Hello Guest Click here to check FX Binary Point Financial Directory

USD to maintain momentum as we head towards FOMC minutes - BNPP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Economists at BNP Paribas, expect the minutes to the FOMC’s October 27-28 meeting to reinforce market expectations for rate hikes to begin in December, even though the meeting preceded the very strong October employment report.

    Key Quotes

    “The USD’s strength this week has driven EURUSD to new H2 lows. The overall backdrop remains conducive to further broad USD upside in our view with EURUSD appearing on track to reach its year-lows around 1.05.”

    “However, with ECB easing and Fed rate hikes likely to be increasingly fully priced by that point, there is scope for an on-the-fact rebound and we maintain our year-end target at 1.06.”

    “Still, with December lift-off increasingly becoming market consensus, there may be more sensitivity to Fed indications going forward that USD strength could curtail the extent to which Fed hikes continue during 2016. In this regard, newly appointed Dallas Fed President Kaplan speaks on economic conditions Thursday and market participants will be keen to understand the extent to which this 2017 voter will echo the hawkish message of his predecessor.”
    For more information, read our latest forex news.

Share This Page