Market underpricing the Fed tightening cycle - BNP Paribas

FXStreet (Bali) - Steven Saywell, FX Strategist at BNP Paribas, believes that the market is currently underpricing the Fed tightening cycle.

Key Quotes

"Against the backdrop of the recent USD pullback, events over the next two weeks (Easter period) will be pivotal in ascertaining whether the USD can regain its positive momentum."

"Janet Yellen’s speech after the London close on Friday evening should support the USD if she hints that the Fed is on track to hike rates this September as we believe."

"We think the market is currently underpricing the Fed tightening cycle."