US dollar: 5-year super-cycle is over - Barclays

Strategists from British bank Barclays said in its latest research note released on Thursday, the US dollar could advance over the next 18 months as the Fed raises interest rates further, although its winning streak since 2012 is set to end.

Key Quotes via Reuters:

"We believe the USD super-cycle of the past five years is over: the cyclical divergence that helped the dollar in these years has likely peaked, not only because of the European recovery, but also because the U.S. business cycle is more advanced than in Europe."

"Valuations also suggest downside risks over the medium term, though for the immediate future, we expect the dollar to move sideways against major currencies."

The bank forecast the US currency to strengthen to $1.06 per euro at the start of next year, before weakening back to $1.12, close to current levels.