6 May 2015
Dollar bulls need a stronger sense of tightening from the Fed - BBH
FXStreet (Barcelona) - Analysts at Brown Brothers Harriman explained that one of the most important forces shaping the investment climate is that the US is closer to beginning to normalize monetary policy than other major countries and regions.
Key quotes:
"That gap may be measured in years, not months or quarters, and has not reached the apogee."
"The Federal Reserve will likely hike rates in the next six months, while other major central banks, from Beijing and Tokyo and Sydney, to Frankfurt and Stockholm, that are providing monetary policy for nearly 2/3 of the world economy are still committed to easing policy."
"There are different phases of the dollar bull market. The next leg up likely requires a stronger sense that the Fed will get the opportunity it is looking for, and European rates continue to go where no rates have gone before."
Key quotes:
"That gap may be measured in years, not months or quarters, and has not reached the apogee."
"The Federal Reserve will likely hike rates in the next six months, while other major central banks, from Beijing and Tokyo and Sydney, to Frankfurt and Stockholm, that are providing monetary policy for nearly 2/3 of the world economy are still committed to easing policy."
"There are different phases of the dollar bull market. The next leg up likely requires a stronger sense that the Fed will get the opportunity it is looking for, and European rates continue to go where no rates have gone before."