10 Jul 2015
US growth forecast downgrade is now complete – SocGen
FXStreet (Barcelona) - According to Societe Generale, the drag on the dollar from US growth forecasts is now behind us.
Key Quotes
“Is the US growth forecast downgrade now complete? We are optimistic that it is and that the drag on the dollar from growth forecast downgrades is behind us. With fed funds futures priced for a 0.9% rate in Q4 16 and a 0.25% rate in Q4 15, we don’t envisage much more downward revision to rate expectations. That helps the dollar though won’t be a major factor unless or until the US rate forecasts start shifting in the other direction.”
Key Quotes
“Is the US growth forecast downgrade now complete? We are optimistic that it is and that the drag on the dollar from growth forecast downgrades is behind us. With fed funds futures priced for a 0.9% rate in Q4 16 and a 0.25% rate in Q4 15, we don’t envisage much more downward revision to rate expectations. That helps the dollar though won’t be a major factor unless or until the US rate forecasts start shifting in the other direction.”