US data consistent with a dovish Fed – BNPP

Research Team at BNP Paribas, suggests that the softer US data over the past week is consistent with their economists’ view that economic conditions will not be supportive of further Fed tightening this year.

Key Quotes

“Against this backdrop we see the recent corrective USD recovery as largely complete and have recommended a long EURUSD position on Friday. US data in the week ahead is limited to housing starts on Tuesday and the Philly Fed survey on Thursday. NY Fed President Dudley speaks on Monday and we would expect the tone to be consistent with the majority of recent Fed speakers who have tended to argue it’s prudent for the FOMC to wait for a stronger pick-up in inflation before raising rates.”