FXStreet (Edinburgh) – Analysts at BAML reiterated the solid outlook for the greenback in the upcoming months.
Key Quotes
“We continue to expect policy divergence and US growth outperformance to underpin the dollar, even if downside risks in China are realized”.
“Our core forecasts in G10 remain the same, including parity for the end of this year for EUR-USD and 125 for USD-JPY”.
“We did push up our forecast profile for EUR-CHF and lowered it for both AUD-USD and NZD-USD”.
“In EM currencies, however, there are a wide variety of changes on the back of the CNY depreciation”.
“The forecast for end-2016 CNY is now 6..90, along with a wide number of subsequent changes in EM Asia. We also pushed up forecasts for major EM profiles such as USD-INR, USD-MXN and USD-BRL”.
(Market News Provided by FXstreet)