USD Is King; New FX Forecasts - BNPP

From efxnews.com

BNP Paribas revised today its FX forecasts to mainly reflect a stronger USD across the board going into 2015. "The USD has considerable potential to appreciate further. We expect US growth of 2.9% in 2015, finally overtaking the UK to be the fastest growing G10 economy. Our central forecast is for a June Fed hike. Unemployment is falling faster than expected but weak inflation means the Fed is not rushed. We think the market is pricing in too late a first rate hike," BNPP argues. "The USD is tracking the widening of the short-end US yield advantage so increased hiking expectations should further support the ... (full story)