BNPP have adjusted their FX forecasts
BNPP are on the Fed hike wagon. They now see three hikes this year from two previously.
"The most significant change to our economic forecasts this quarter is that we have added a third rate hike to our Federal Reserve profile. Our economists now anticipate Fed hikes in May, September and December of 2017, followed by four rate hikes in 2018,"
"The changes this quarter are modest and mainly reflect the magnitude rather than direction of the moves we expect, as markets seem likely once again to discover the limits of policy divergence as 2017 progresses.
Our forecasts imply USDJPY rising to 128 and EURUSD falling to 1.00 by the end of 2017,"
Here's their forecasts for USDJPY and EURUSD for the following quarters;
USDJPY
Q1 118.00
Q2 121.00
Q3 124.00
Q4 128.00
EURUSD
Q1 1.0400
Q2 1.0200
Q3 1.0200
Q4 1.0000
They're bullish the dollar vs all but a handful of currencies, including the pound.
eFX New has all the big bank forecasts. Check them out here.
