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Fed tightening cycles and their impact on the USD
With:
Sam Lynton-Brown, CFA, Head of Global Developed Markets Strategy
Alex Jekov, G10 FX Strategist
BNP Paribas | Global Markets (Recorded 15 February 2022)
We analysed USD performance during Fed rate hike cycles and reject the widely-held consensus that the USD peaks versus low beta FX prior to Fed lift-off, rather conclusions are nuanced.
We find that the USD performed better when the starting level of rate spreads was wide and in the USD’s favour, especially if US risky assets are stable despite higher yields.
We also find that the speed of tightening is not indicative of USD performance throughout the cycle.
For country-specific disclaimers and legal notices, please refer to https://globalmarkets.bnpparibas.com/gm/home/Markets_360_Country_Specific_Notices.pdf
For more information, please refer to https://markets360.bnpparibas.com
Hosted on Ausha. See ausha.co/privacy-policy for more information.
View all episodes
By BNP Paribas Global MarketsWith:
Sam Lynton-Brown, CFA, Head of Global Developed Markets Strategy
Alex Jekov, G10 FX Strategist
BNP Paribas | Global Markets (Recorded 15 February 2022)
We analysed USD performance during Fed rate hike cycles and reject the widely-held consensus that the USD peaks versus low beta FX prior to Fed lift-off, rather conclusions are nuanced.
We find that the USD performed better when the starting level of rate spreads was wide and in the USD’s favour, especially if US risky assets are stable despite higher yields.
We also find that the speed of tightening is not indicative of USD performance throughout the cycle.
For country-specific disclaimers and legal notices, please refer to https://globalmarkets.bnpparibas.com/gm/home/Markets_360_Country_Specific_Notices.pdf
For more information, please refer to https://markets360.bnpparibas.com
Hosted on Ausha. See ausha.co/privacy-policy for more information.