BNPP recommends keeping short positions on EUR / USD

Calendar of events for this week for the United States – quite loose, but solid performance Friday’s employment report will likely support the dollar, while the markets continue to expect the Fed to raise rates in the middle of next year, noted in BNPP.

“Minutes of the September Fed meeting will be released on Wednesday, and we expect to see the development of discussions on the feasibility of waste from the point of talking about” a rather long time. “BNPP Economists expect that the line about “a rather long time” will disappear from the policy statements by October, and its place will be a warning to markets not hope for such a speedy rate increase, predicts the French bank.

“We remain” bullish “sentiment on USD, however, we expect its growth mainly against low-income EUR, JPY and CHF, while the higher-yielding currencies G10 will be outperformed on expectations of higher interest rates in the United States,” – adds BNPP.

According to this forecast, the bank holding short positions EUR / USD, with a downward target at 1.22.