From Credit Agricole:
The USD has been relatively well supported. Even if this week’s Fed minutes made a bigger case of the central bank considering higher rates as soon as in June, incoming data must support such prospects, especially when considering that the probability of the central bank to act in June remains well below 50%. Nevertheless, as stressed previously we expect rate expectations to remain at least stable in the short-term what should keep USD downside limited from the current levels. As soon as event risk as related to the EU referendum passed, there should be more potential of rising rate expectations to the benefit of the greenback. This is especially true when it comes to pairs such as USD/CHF, which should remain a buy on dips.
