Homepage / Asia / Why this analyst thinks the US dollar will actually strengthen going forward
Deneme Bonusu Veren Siteler Deneme Bonusu 2024 Explore the Magic of WildCardCity Güvenilir Bahis Siteleri En İyi Kumar Siteleri Balıkesir Triatlonuna Avrupadan Ödül Tricks of the Aviator gambling establishment game by Spribe Çevrim Içi Kumar Siteleri “bonus” Yalanıyla Kandırıyor En Güvenilir Canlı On Line Casino Siteleri Xbetting-tips Com Uncovering the Abundant Tapestry of Ozwin Gambling establishment Evaluating Board Portal Providers Uncovering the Wealthy Tapestry of Ozwin On line casino Electronic Data Area Providers Evaluation Cobra Internet casino: Raising the Australian On the internet Video gaming Practical experience 4 Things to Search for in Safeguarded Cloud Safe-keeping Fastpay On line casino Australia – Simple and No-Taxation Wagering Web page officielle franзaise de Joka Gambling establishment The Software Development Universe Game Woo Internet casino – Enjoy Slot machine games around australia Ostdeutsche Biersorten What Are Virtual Data Rooms? Vitamin D Receptor Polymorphisms Revue du Casino BlackLabel Faktory, kterй ovlivnujн hodnocenн ceskэch online kasin How to Make the Most of Your Web Development Organization and Advertising Efforts L’essor des casinos en ligne en France Boost Meeting Efficiency With Boardroom Technology Developments WildJoker Casino WildCardCity On line casino – Guaranteed Australian Gambling Portal WildCardCity Casino – The Ideal On the internet Gambling establishment within australia Modern Technologies Produce Sharing Documents Online Faster and More Protect Free Virtual Info Room pertaining to Speedy Due Diligence A Review of Data Area Software For people who do buiness Five Board Bedroom Features Which will help You Acquire a More Productive Boardroom Electronic Systems To your Business Understanding Legal Terms and Laws in Today’s World The Laws and Contracts of Hollywood: A Sunset Blvd. Tale Legal Discussion Between Johnny Cash and Antonin Scalia Legal Insights: What Teens Should Know Legal Issues and Exceptions: What You Need to Know Legal Insights and Expert Analysis Celebrity Dialogue: Legal Matters in the 21st Century Famous Personalities Discuss Legal Issues The Boys in the Boat: Legal Advisors and The Quest for Legal Knowledge Understanding Legal Matters: Q&A on Criminal Law, Joint Ventures, and More Enticing Title The Departed: Understanding Basic Work Requirements and Legal Rights Youth Slang Blog Article Legal Insights: A Journey into the World of Law The Ins and Outs of Legal Matters: Everything You Need to Know Legal Insights and Trends: A Rap Guide Mysterious Legal Matters Unveiled Insights and Information: Understanding Various Laws and Regulations Famous People of the 21st Century The Circle of Legal Life The Intersection of Fashion Law, Legal Translation, and THC Oil: A Modern Legal Guide Legal Q&A: Understanding Joinder Federal Rules and More Understanding Legal Terms and Conditions: A Comprehensive Guide Understanding Legal Documentation in a Fun Way! Understanding Legal Aspects: From Islamic Law of Inheritance to Farm Law Protests Understanding Legal Rights: A Guide to Legal Regulations and Requirements Understanding Legal Guidelines and Agreements Famous 21st Century People in Conversation Mysterious Legal Matters Unveiled Legal Matters and Real Estate: A Conversation Between Cameron Boyce and Donald Trump Understanding Legal Expertise and Why It Matters Legal FAQs and Expert Services Understanding Legal Ramifications: Common Law Ontario Health Benefits and More The Ins and Outs of Legal Requirements: From FBI Academy Physical Requirements to Silver Lake Fishing Rules The Legal Underworld: Understanding the Significance of Laws and Rights Legal Conversations: A Dialogue Between Jon Jones and Chadwick Boseman Legal Beats: Bobcats, Real Estate, Babysitting, and More Legal Matters and Netflix VPN Diabolique: Legal Affairs and Deception Ben Shapiro and Eddie Van Halen Discuss Legal Matters Legal Aid and Other Legal Issues Q&A Famous 21st Century Personalities in Dialogue Youthful Blog Post Expert Legal Insights: Top 8 Law Firms in Australia, Quasi Contracts, and More! Youth Slang in Legal Matters Steps to make Your Mother board Room Even more Productive and Meaningful Choosing Data Rooms for Homework The Enigmatic World of Legal Affairs and Contracting The Mystery of Legal Matters Understanding Legal Mandates and Guidelines in the Business World Celebrity Dialogue: Legal Matters and Personal Names Legal Questions: Answered! Mysterious Legal Insights and Tips The Mysterious World of Legal Agreements Legal Lingo: Reviews, Agreements, and More Exploring Legal Education and Responsibilities: A Comprehensive Guide Unconventional Wisdom: A Dialog Between 21st Century Icons Mysterious Legal Matters Unraveled The Legal Maze: Navigating the Legal Landscape Dialogue between Jared Kushner and Vasyl Lomachenko Legal Matters: A Conversation Between Prince and Lionel Messi Get Clued In: The Legal Lowdown for Gen Z Famous People of the 21st Century Talk About Legal Matters The Enigmatic World of Legal Agreements and Terms Are You Breaking the Law? Unusual Legal Questions Answered Understanding Legal Services, Parental Responsibility Laws, and More Understanding Legal Agreements and Requirements

Asia

Why this analyst thinks the US dollar will actually strengthen going forward

While investors seem to have come to a consensus view that the U.S. dollar rally is coming to an end, Credit Agricole has offered a contrarian take: There is room for the greenback to strengthen.

David Forrester, the bank’s FX strategist told CNBC Monday that markets have been predominantly focused on U.S. inflation data and pricing in an overly cautious Federal Reserve. But, he thinks the Fed will be more hawkish than what is currently expected, which will support the U.S. dollar.

“The Fed seems to have changed its policy response function. Yes it’s going to pay attention to the data, but less so. It now wants to get its rates normalized so that it actually has room to cut rates in the next downturn,” Forrester said.

“Let’s not forget here: The U.S. expansion, while being soft, is actually pretty mature so the Fed is getting lined up here in preparation for the next downturn. That’s why we think they’re going to hike rates and we will see a steepening of the U.S. Treasury curve and that will be supportive of the U.S. going forward.”

Credit Agricole expects the Fed to hike rates once more this year, followed by three times in 2018. U.S. inflation — still below its 2 percent target despite a low unemployment rate — has been a key point in the argument on whether the Fed should continue normalizing rates.

Forrester said the divergence between the unemployment rate and inflation is not unique to the U.S. Globally, economies face structural issues such as ageing populations and automation replacing jobs, which could increase the risks of a recession.

But, he said U.S. inflation should pick up on the back of further wage growth and a rebound in oil prices.

“We expect the U.S. economy to continue to recover and strengthen, we will believe in the Philips curve in the U.S. We do expect wages growth to accelerate and inflation expectation(s) to pick back up. So all-in-all, we do expect that re-steepening,” he said. The Philips curve relates to a supposed inverse relationship between the level of unemployment and the inflation rate.

Forrester’s views are in contrast to that of many analysts, who expect weakness in the U.S. dollar. Ken Peng, Asia investment strategist at Citi Private Bank, told CNBC’s “Squawk Box” that the greenback is headed for a “new cycle” after a six-year rally since 2011.

He added that the dollar weakness will be “one of the greatest market trends” for global investors.

“I think the U.S. probably still has a good shot at passing some kind of tax reforms, tax cuts, fiscal stimulus but it’s just going to be a lot smaller. What that means is that the U.S. economic performance, interest rates, inflation are probably not going to run that far ahead of the rest of the world and that’s probably going to bring us a weaker U.S. dollar,” Peng said on Monday.

“Going forward, we’re looking at a new cycle for the U.S. dollar. This is not going to be small nor brief, I actually think after a six-year rally we’re probably in for a few years of weakness in U.S. dollar. That typically contains 15 to 20 percent of potential weakness there in the U.S. dollar broadly over a number of years.”

Source: cnbc china
Why this analyst thinks the US dollar will actually strengthen going forward

Comments are closed.