US: Buoyant activity – BNP Paribas

Sandeep Kanihama FXStreet Contributor

US economy’s economic activity has been buoyant so far, largely thanks to tax cuts, according to analysts at BNP Paribas.

Key Quotes

“For the foreseeable period, a landing is more than a possibility nInterest rates hikes and tariffs increases on worth $300bn of imports will start to weigh on firms profitability, then activity.”

“The downward adjustment could be sizeable in highly leveraged sectors such as energy and IT. As a consequence, the monetary tightening could rapidly come to an end, after a supplementary 50-75 bps hike in key rates.”

“Long term-bond yields would also stabilize, at around the 3pct level.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.