Noting a few remarks on the euro and US dollar from about the place, longer term views based on monetary policy divergence and political concerns
HSBC looking for the Federal Reserve to take it up a notch and become a little more aggressive with shifting away from accommodation, which markets have not yet priced in.
- Thinks it likely the FOMC (meet next week) will hike but also indicate a slightly faster pace of tightening
- Says recent Fed officials comments pointing to a case for rates higher than neutral
- Wil be USD supportive
In being USD supportive it will be a headwind for the EUR, I'll have some more on EUR more specifically to come.
