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3 Mar 2015
Global markets in a snapshot - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch explained, in a snapshot, their views across the global markets.
Key Quotes:
"Key forecasts in FX, rates and commodities: Our core macro views remain the same, as much of the rest of the world is fighting deflationary pressures while the Fed ponders rate hikes amid continued US recovery. We still expect both the USD and US yields to rise."
"G10 FX:modest adjustmentsoutside the majors: Our benchmark G10 forecastsare unchanged, including our end-2015 targets for EUR-USD of 1.10 & USD-JPY at 123. We do make adjustments elsewhere, raising our forecasts for EUR-CHF, while lowering them for EUR-NOK & AUD-USD."
"EM FX:incremental shifts favoring USD: In the major EM currencies, there are some incremental shifts. We modestly push up our USD-CNY, USD-BRL, and USD-MXN profiles, although our USD-INR profile is the same."
"Interest rates: no changes outside of Europe: Our outlooks for developed marketinterest ratesare broadly unchanged, including our end-2015target for the US 10-year rate at 2.35%. We lower our targets for Eurozone yields, while raising them for the UK."
"Commodities: lower natural gas: We leave most of our commodity price views unchanged, including an expectation for oil to end the year in the high $50/bbl area. However, we have shrunk our forecasts for natural gas prices."
Key Quotes:
"Key forecasts in FX, rates and commodities: Our core macro views remain the same, as much of the rest of the world is fighting deflationary pressures while the Fed ponders rate hikes amid continued US recovery. We still expect both the USD and US yields to rise."
"G10 FX:modest adjustmentsoutside the majors: Our benchmark G10 forecastsare unchanged, including our end-2015 targets for EUR-USD of 1.10 & USD-JPY at 123. We do make adjustments elsewhere, raising our forecasts for EUR-CHF, while lowering them for EUR-NOK & AUD-USD."
"EM FX:incremental shifts favoring USD: In the major EM currencies, there are some incremental shifts. We modestly push up our USD-CNY, USD-BRL, and USD-MXN profiles, although our USD-INR profile is the same."
"Interest rates: no changes outside of Europe: Our outlooks for developed marketinterest ratesare broadly unchanged, including our end-2015target for the US 10-year rate at 2.35%. We lower our targets for Eurozone yields, while raising them for the UK."
"Commodities: lower natural gas: We leave most of our commodity price views unchanged, including an expectation for oil to end the year in the high $50/bbl area. However, we have shrunk our forecasts for natural gas prices."