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BNP Paribas: stay long on USD

The US dollar retraced all the last week's post-NFP gains at the beginning of the new week. That's how analysts at the French bank BNP Paribas explain the USD dynamics:

"US 2-year Treasury yields dipped to the pre-NFP levels. It means that the markets still don't believe in a rate hike before December 2015. Dovish FOMC comments, delivered last week, contributed to the investors' pessimism".

However, analysts recommend holding the USD longs ahead of the May retail sales data on Thursday: "Market sentiment will quickly change if the retail sales data look more like  the NFP, than like the Q1 GDP. There are a lot of indications that the retail figures could come out strong in May". 

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