USD bulls - patience needed as Fed will still hike this year

USD bulls - patience needed as Fed will still hike this year

17 August 2015, 12:11
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BNP Paribas together with the other int'l financial groups are continuing to make some forecast and analysis concerning about the following: when USD will start to become more stronger this year. They found few reasons about why USD will become stronger this year: Fed rate hike will begin this year anyway, good US economic data

  • "While we do not expect this week’s China developments to ultimately prevent the Fed from hiking rates this year, the uncertainty generated by the moves does support our expectation that hikes will not begin until December."
  • "Data has also been too mixed this month to support September rate hike hopes. Yesterday’s upward revisions to June retail sales led our economists to push up their forecast for Q2 GDP to a 3.4% annualized rate, well up from the 2.3% first reported by the Commerce Department. However, the softer July reading suggests a bit less momentum for Q3."

As we see, BNP Paribas (and all the other financial conglomerates) are longing for USD to be as strong as possible with EUR/USD to become less than 1.00 soon.
So, will see ...

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