USD’s Reflation Trade ‘Taking a Nap’; EUR/JPY Seen Rising: ING
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Wei-Tong Shu (ING Groep NV)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283
(Bloomberg) -- The USD’s reflation trade on President Trump’s economic policies is “taking a nap,” but may return in 2H, says Wei-Tong Shu, ING’s head of FX, rates and credit trading in the Americas.
- Markets are underpricing likelihood of two Fed interest-rate increases this year and two-three hikes in 2018, which would bolster the USD, Shu said in interview Tuesday from New York
- “The cross I like most is euro-yen” in FX
- European economic outlook is improving; inflation is accelerating in Germany vs Japan
- EUR/JPY may rise to 126 or higher in short term, from ~124.36 Tuesday
- UST 10Y yield should climb to 2.6% in one-three months
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Wei-Tong Shu (ING Groep NV)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283