19 Jun 2015
US growth to underpin USD strength by 2015 end – BAML
FXStreet (Barcelona) - Strategists at BofA-Merrill Lynch, remain USD bulls, expecting policy divergence and US growth to boost the dollar by 2015 end.
Key Quotes
“We remain USD bulls even as recent US data has started to pick up though Fed caution suggests we could see a period of consolidation. The Fed remains data dependent but wants to see a ‘decisive evidence’ of a pickup in data before raising rates. Until it does, the USD could struggle as uncertainty about the timing of the first hikes weighs and still large USD long positions. But, we continue to expect policy divergence and US growth outperformance to underpin USD strength later in 2015.”
Key Quotes
“We remain USD bulls even as recent US data has started to pick up though Fed caution suggests we could see a period of consolidation. The Fed remains data dependent but wants to see a ‘decisive evidence’ of a pickup in data before raising rates. Until it does, the USD could struggle as uncertainty about the timing of the first hikes weighs and still large USD long positions. But, we continue to expect policy divergence and US growth outperformance to underpin USD strength later in 2015.”