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28 Nov 2014
Bullish on the USD – BNPP
FXStreet (Barcelona) - The BNP Paribas Analysts remain bullish on the USD while noting the US Yields to be the key driver behind its strength.
Key Quotes
“We remain bullish on the USD. Now that the unemployment rate is approaching the Fed’s NAIRU range of 5.2-5.4%, we think the recent sell-off in US front-end rates is overdone and hence that the market is under-pricing the likely timing and pace of Fed hikes. We think US yields will stay the key driver of the USD as the Fed’s policy stance diverges from the ECB and BoJ.”
Key Quotes
“We remain bullish on the USD. Now that the unemployment rate is approaching the Fed’s NAIRU range of 5.2-5.4%, we think the recent sell-off in US front-end rates is overdone and hence that the market is under-pricing the likely timing and pace of Fed hikes. We think US yields will stay the key driver of the USD as the Fed’s policy stance diverges from the ECB and BoJ.”