Research Team at BBH, thinks that the US economy is picking up here in Q1 16 from a disappointing Q4 15.
Key Quotes
“We see the US dollar’s recent weakness as a function of two “transitory” developments. First, the dollar had run-up since mid-October. Technically, that advance is being corrected, which is to say there a profit-taking phase. Second, and what may have helped fuel the technical correction, is the pendulum of market sentiment has swung hard against a Fed hike, and this has sapped some of the dollar’s strength as the interest rate differential leg buckled. However, we suspect that the pendulum has swung as far, or nearly as far is it can, without a further deterioration of the economy.”
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