14 Aug 2015
USD prospects remain bullish – BAML
FXStreet (Edinburgh) - Analysts at BAML have suggested that the perspective for the greenback remains on the bullish side in the medium to longer run.
Key Quotes
“The dollar extended its rally since the June FOMC meeting as the market priced increased chances of a September hike”.
“The July FOMC statement highlighted the bar for hikes is not high with the Committee only needing to see “some further improvement in labor market improvement” before they will be comfortable raising rates”.
“We continue to expect policy divergence and US growth outperformance to underpin the dollar, even if downside risks in China are realized”.
“We maintain our EUR/USD forecasts at 1.00 for year-end 2015. Year-end USD/JPY and GBP/USD forecasts remain at 125 and 1.49, respectively”.
“In the dollar bloc, we raised our USD/CAD profile, now seeing it at 1.32 and 1.35 for YE ‘15 and ’16. In the Skandies, we raise EUR/NOK and EUR/SEK to 8.70 and 9.30 for YE ’15 and 8.30 and 9.10 for YE ’16”.
Key Quotes
“The dollar extended its rally since the June FOMC meeting as the market priced increased chances of a September hike”.
“The July FOMC statement highlighted the bar for hikes is not high with the Committee only needing to see “some further improvement in labor market improvement” before they will be comfortable raising rates”.
“We continue to expect policy divergence and US growth outperformance to underpin the dollar, even if downside risks in China are realized”.
“We maintain our EUR/USD forecasts at 1.00 for year-end 2015. Year-end USD/JPY and GBP/USD forecasts remain at 125 and 1.49, respectively”.
“In the dollar bloc, we raised our USD/CAD profile, now seeing it at 1.32 and 1.35 for YE ‘15 and ’16. In the Skandies, we raise EUR/NOK and EUR/SEK to 8.70 and 9.30 for YE ’15 and 8.30 and 9.10 for YE ’16”.