EUR/USD: BNP Paribas believes Fed will not increase rates any more in 2016 or 2017, recommends buying pair

Today, BNP Paribas reaffirmed its bullish view on the EUR/USD, after Wednesday's Fed meeting, which has not influenced the bank's forecasts in terms of rate increases by the Fed:

"The FOMC made only minor changes to its statement issued Wednesday night. The statement reported a decline in concerns about the external environment, abandoning its reference to global economic and financial risks.

However, the statement also highlighted the fact that overall business activities and household spending have remained moderate.

We continue to believe that the economy's weak short-term dynamics and uncertainty will result in the Fed not raising rates for some time.

We therefore believe that the Fed will not increase rates further this year nor in 2017.

As a result, we remain buyers of the EUR/USD."

For the record, BNP Paribas bank has a long EUR/USD position that it opened at 1.1290 with a target of 1.16 and a stop at 1.1140.