Salient to Investors:
Robin Brooks at Goldman Sachs said:
- The dollar’s rise is small in historical and economic terms as many traders wait/hope for a pull-back which won’t come.
- Euro-dollar levels are not remotely pricing in the kind of balance sheet expansion that Draghi talked about in September, so future ECB press conferences will trigger more euro-dollar downside – to $1.25 in 6 months and parity by the end of 2017.
- Factors ranging from monetary-policy divergence to inflation trends indicate the dollar’s rally against its major peers during the past 4 months has room to continue.
- Recent dollar strength has been an unusual confluence of idiosyncratic trends, and as Fed forward guidance fades, we will see real dollar strength.
Read the full article at http://www.bloomberg.com/news/2014-09-25/dollar-rally-to-gain-fuel-as-ecb-talks-stimulus-goldman-says.html
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