US: More growth, higher rates and yields will further lift the dollar rally - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that in the wake of the US Presidential election, they have revised their forecasts of US GDP growth and inflation upwards.

Key Quotes

“This leads to a higher path for Fed Funds, Treasury yields and the dollar. With the Fed now expected to raise rates three times between now and the end of 2017, on their way to a 1.75%-2% peak, we expect 10year Treasury yields to reach 1.9% next year and to peak a little above 3%. This will drag bond yield differentials significantly in the dollar’s favour in both real and nominal terms.”