USD Struggling as Real Yields Head Further into Negative Territory - BNPP
USD Struggling as Real Yields Head Further into Negative Territory - BNPP
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.”
(Market News Provided by FXstreet)
