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4 Aug 2014
Higher US rates sooner that estimated? – Danske Bank
FXStreet (Edinburgh) - In the opinion of Arne Rasmussen, Chief Analyst at Danske Bank, the US economy might see higher rates earlier than previously anticipated.
Key Quotes
“Fed hikes are drawing closer, growth is picking up and positioning has become more square following a short squeeze in long-end USD and EUR steepeners”.
“We have revised our view on the Fed and now expect the first hike in April instead of mid-2015, leaving room for higher US rates”.
“We see more value in paying in the 10-15Y segment than in the 2Y segment”.
“Higher US rates will be accompanied by a steeper EUR curve. Part of the recent flattening has been driven by lower US rates and it is still possible that the ECB will succeed in boosting growth and inflation expectations”.
Key Quotes
“Fed hikes are drawing closer, growth is picking up and positioning has become more square following a short squeeze in long-end USD and EUR steepeners”.
“We have revised our view on the Fed and now expect the first hike in April instead of mid-2015, leaving room for higher US rates”.
“We see more value in paying in the 10-15Y segment than in the 2Y segment”.
“Higher US rates will be accompanied by a steeper EUR curve. Part of the recent flattening has been driven by lower US rates and it is still possible that the ECB will succeed in boosting growth and inflation expectations”.