JP Morgan's Lafargue says that the US dollar should remain on a weaker path
JP Morgan strategist Julien Lafargue spoke to Bloomberg TV earlier
- Forecast for the dollar remains on a weakening path
- Weaker dollar is due to deficits and other non-political factors
- Inflation in US is rising gradually
- Fed is likely to let inflation "run a bit hot"
- US can't label others as currency manipulator, since they would be called the same
Pretty much the market consensus comments there by Lafargue. But he also comments a little on sterling saying that it is the "hardest currency to make a call" on. Adding that he sees sterling staying at current levels for the time being - though what his definition of 'current levels' is, your guess is as good as mine.
But he does share his view on the BOE saying that two rate hikes this year would be a surprise event. The market pretty much has a rate hike baked in for May already, but a subsequent hike in November this year is still a coin-toss.