FXStreet (Edinburgh) – The greenback is expected to pick up pace ahead in the year, suggested analysts at Goldman Sachs.
Key Quotes
“The Dollar appreciated by 13% on a broad trade-weighted basis from the middle of 2014 to Spring 2015, led by gains against the major currencies – including the EUR, JPY, AUD, NOK and SEK. But its momentum has stalled since then”.
“We believe this will be temporary. Looking ahead, we expect domestic factors to drive the USD much stronger. In the near term, we expect the signs of a sequential pick-up in the US to become clearer, assuaging concerns after the weak first quarter”.
“Longer term, we expect US growth to continue to outperform its G10 peers and the short rate differentials to continue to move higher, in support of the USD”.
“Further, after more than a decade of USD weakness, markets are under-positioned for a stronger USD. We believe we are merely at the ‘end of the beginning’ of a longer-term USD trend”.
(Market News Provided by FXstreet)