Dovish FOMC minutes may suggest strong dollar phase not here yet - Societe Generale

FXStreet (Łódź) - Kit Juckes, Global Head of Currency Strategy at Societe Generale believes that this week´s dovish FOMC minutes could point to the fact that the dollar hasn't entered a 'strong phase' yet.

Key Quotes

"The dollar has rallied too far, too fast since July on the back of good data and a small change in the FOMC language."

"Long dollar positions became excessive and the FOMC minutes were a catalyst for a clear-out."

"Maybe the dovish nature of the minutes is a reminder that we have not yet moved to a ‘strong dollar' phase, just a correction from excessive under-valuation, and downside pressure will continue to increase on high yielders, commodity currencies and the euro."