US Dollar expected to strengthen again - Capital Economics

FXStreet (Bali) - Julian Jessop, Economist at Capital Economics, notes that the US dollar is expected to strengthen again over the remainder of the year.

Key Quotes

"The upshot is that the limited market reaction to the US GDP is consistent with the interpretation that the news from the first quarter, while bad, is also old."

"None of this therefore changes our view that the dollar will strengthen again over the remainder of the year. In particular, we remain comfortable with our call that the euro will fall back to parity against the US currency as the crisis in Greece escalates, undermining the economic recovery in the region."