24 Jul 2015
Remaining bullish on USD - BNP
FXStreet (Guatemala) - Analysts at BNP Paribas explained that The USD is struggling against lower yielding currencies despite a sharp drop in US weekly jobless claims on Thursday.
Key Quotes:
"Claims fell to 255k, the lowest weekly level since 1973, and, while claims data can be unreliable this time of year, the 4-week average remains at levels consistent with a robust labour market. Despite the data, US 2-year Treasury yields are unable to sustain a push above 70bp, with investors possibly wary that falling commodity prices will suppress inflation expectations and thus derail Fed tightening plans once again."
"We remain patiently bullish on the USD, although with the Fed unlikely to send a strong signal at next week’s meeting, we recognize that it may take some time for dollar momentum to accelerate again. We remain short EUR/USD from 1.1025, with our stop trailed to entry."
Key Quotes:
"Claims fell to 255k, the lowest weekly level since 1973, and, while claims data can be unreliable this time of year, the 4-week average remains at levels consistent with a robust labour market. Despite the data, US 2-year Treasury yields are unable to sustain a push above 70bp, with investors possibly wary that falling commodity prices will suppress inflation expectations and thus derail Fed tightening plans once again."
"We remain patiently bullish on the USD, although with the Fed unlikely to send a strong signal at next week’s meeting, we recognize that it may take some time for dollar momentum to accelerate again. We remain short EUR/USD from 1.1025, with our stop trailed to entry."