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Credit Agricole: Today’s NFP print to support Fed rate expectations - eFXnews

FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that today’s NFP data might support Fed rate hike expectations, and further add that chances of a sharp downside risk for USD post the data release are less.

Key Quotes

“We still expect today’s data to keep Fed rate expectations well supported and as the latest data suggests that investors are prepared for a negative surprise we do not anticipate heightened USD downside correction risk.”

“On the contrary, we remain of the view that the currency should be sold on rallies, for instance against the EUR and the JPY.”

“When it comes to USD/JPY risk sentiment will prove an important driver too.”

“However, as stressed above we do not expect Greece-related uncertainty to make a case of sustainably rising risk aversion, especially as the ECB’s aggressive monetary policy stance will keep liquidity expectations stable.”

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