USD could extend its rally next week – Westpac

Richard Franulovich, Strategist at Westpac, sees the greenback could gather further traction in the next week.

Key Quotes

“News and data flow next week could well provide the USD with some fresh legs, April headline CPI for example likely to print as high as +0.4/0.5%, the biggest monthly increase in some years thanks to higher gasoline prices”.

“The FOMC minutes for their late April meeting, while unlikely to have a strong hawkish overtone, will nevertheless signal that most members remain at least open minded toward the June option, that external risks have dissipated and that Q1 growth weakness is mostly transitory”.

“The Fed is ultimately likely to stand pat in Jun but OIS odds of zero are surely too low”.