Credit Agricole on USD, EUR and NZD
When it comes to the Fed we see little scope of further falling rate
expectations from the current levels. It may be true that growth
expectations fell on the back of the most recent weaker than expected labour and
retail sales data releases. However, the Fed is likely to regard such weakness
as temporary rather than a change in trend. This is especially true as overall
growth conditions remain favourable and as several Fed members reiterated
recently, that interest rates should rise soon.
