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Credit Agricole: USD into retail sales, too early for rally to end – eFXnews

FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that with USD demand fuelling due to mid-year Fed rate hike expectations, and today’s US retail sales projected to support improving economic conditions, the USD rally is far from over.

Key Quotes

“The USD has remained in demand on the back of firm expectations of the Fed considering higher interest rates as soon as mid-year.”

“Looking ahead, today’s retail sales report will be in focus, which our economists expect to confirm further improving conditions. Any indication of strengthening domestic demand conditions would be taken as an indication of further stabilising price developments to the benefit of Fed rate expectations and the USD.”

“As such we believe that it is too early to expect the greenback’s appreciation trend to come to an end.”

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