USD rally to continue into Q1 - TDS

Ned Rumpeltin, European Head of FX Strategy at TDS, maintains a high-conviction USD bullish stance and expect the dollar’s rally to continue into Q1.

Key Quotes

“We are currently long USD against a portfolio including the CAD and the NZD. We also look for extended gains against most other G10 currencies, such as the AUD and JPY. US reflation dynamics are gaining broader traction while the USD has joined the ranks of the top-tier ‘high yielders’ among G10 currencies. While the Fed has retained its dovish rhetoric, this is only likely to slow—not prevent—the widening policy and macro divergence between the US and other major currencies.”