11 Jun 2015
Credit Agricole: Buy USD dips – eFXnews
FXStreet (Barcelona) - The Credit Agricole Team believe that today’s US retail sales data might pour strength in USD and confidence into a Fed hike in Q3, as shared by eFXnews.
Key Quotes
“Despite the recent weakness against the EUR, we remain of the view that the USD should be bought on dips.”
“The DXY index climbed 2.4% in May after its April decline and has rallied in 10 of the past 11 months. At the same time US data surprises have inched steadily higher. A highlevel depiction of US growth from recent indicators suggests the economy was growing at a 2.4% clip in April – not the strong payback expected from the weak Q1 but a sign the economy has started to accelerate gradually again.”
“Under the hood, we recently saw a strong reading from housing, trade and automobile sales. The latter argues for a modest pick-up in consumer spending in Q2.”
“As such, we think markets will pay close attention to today’s retail sales release with a firm reading consistent with the expected bounce-back in consumer spending. Linked to this is confidence that growth is recovering and the Fed can hike in Q3.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Despite the recent weakness against the EUR, we remain of the view that the USD should be bought on dips.”
“The DXY index climbed 2.4% in May after its April decline and has rallied in 10 of the past 11 months. At the same time US data surprises have inched steadily higher. A highlevel depiction of US growth from recent indicators suggests the economy was growing at a 2.4% clip in April – not the strong payback expected from the weak Q1 but a sign the economy has started to accelerate gradually again.”
“Under the hood, we recently saw a strong reading from housing, trade and automobile sales. The latter argues for a modest pick-up in consumer spending in Q2.”
“As such, we think markets will pay close attention to today’s retail sales release with a firm reading consistent with the expected bounce-back in consumer spending. Linked to this is confidence that growth is recovering and the Fed can hike in Q3.”
This content has been provided under specific arrangement with eFXnews.