USD: Credit Agricole believes dollar decline should be limited, remains a buyer

In a note published today, Credit Agricole notes that the dollar is sanctioned to a lesser extent since Wednesday night's Fed statement.

"Although the Fed has acknowledged mixed growth, it said it was seeing this economic weakness as temporary. Therefore, all rate-raising scenarios remain possible.

In the longer term, we are sticking to our view that the Fed will raise rates in September, especially if inflation expectations are able to improve despite slowing growth.

This suggests that there is little room for Fed rate expectations to recede, which should limit the USD's decline, so we are therefore keeping a buying bias."