21 Jan 2015
USD uptrend to remain in place if Fed hikes in 2015 - SocGen
FXStreet (Bali) - As long as the Fed hikes rates this year - at least once - the dollar’s uptrend will remain in place, notes Kit Juckes, Head of FX Strategy at Societe Generale.
Key Quotes
"As long as the Fed does indeed raise rates this year - at least once - the dollar’s uptrend will remain in place. If the FOMC does indicate that they remain on track, that leg will start again before the end of the month, pretty much regardless of what the ECB does."
"The contrast in global economic trends that the WEO is highlighting is one thing, but the contrast in monetary policy if the Fed goes ahead will be quite another and fuel for dollar strength on a broad basis, away from the EUR/USD rate."
"We still particularly like being long USD against the Canadian dollar, as persistently soft oil prices will grow on capital spending and keep the BOC in check. But Fed tightening will also highlight US-Asian policy divergence."
Key Quotes
"As long as the Fed does indeed raise rates this year - at least once - the dollar’s uptrend will remain in place. If the FOMC does indicate that they remain on track, that leg will start again before the end of the month, pretty much regardless of what the ECB does."
"The contrast in global economic trends that the WEO is highlighting is one thing, but the contrast in monetary policy if the Fed goes ahead will be quite another and fuel for dollar strength on a broad basis, away from the EUR/USD rate."
"We still particularly like being long USD against the Canadian dollar, as persistently soft oil prices will grow on capital spending and keep the BOC in check. But Fed tightening will also highlight US-Asian policy divergence."