If DB’s forecast of lower oil prices materializes, this will provide furthersupport for our stronger USD view. The Fed has tightened policy theyear after the last 4 favorable ‘exogenous’ oil shocks. Historicprecedent fits with current circumstances where lower oil prices helprisky assets and the real economic recovery, such that initial Fedaccommodation gives way to Fed tightening and a broadening of USDstrength.
Read the full report: Market Research
Deutsche Bank