BNP Paribas: Fed may tighten currency market

Currency strategists of BNP Paribas noted that the accompanying statement from the FOMC to Fed led to weakening the concerns about external risks, but the commission offset relatively weak growth.

Overall, the text was with mixed character and gave no hope for raising rates by the Fed. Their forecast remained unchanged.

The Bank draws attention to the continuing uncertainty and the fact that while the economy continues to grow, the Fed will be forced to continue tightening policy.

While the situation, according to economists at BNP Paribas, suggests tightening by the central bank, they do not expect interest-rate hike by the Fed before the end of 2017. In BNP Paribas noted that there is potential to further regulate the expectations of investors, who could put pressure on the US currency in the short term.

In addition, for the euro is expected surplus on the current account and in BNP Paribas remain long in the EUR/USD at $1.1290 with a stop at $1.1140 and a target at 1.16.