S&P erases 2014 decline, but who benefits?
The ‘dollar as a growth currency’ theme is one of the many consensus views for 2014 which have failed to materialise in full. Despite some brief spurts, there has been a distinct lack of strong data to support the notion of a robust US economic recovery to
underpin the ‘growth dollar’ story. Despite the early setback, we believe the case remains strong for the dollar to start benefitting from US-driven risk appetite, but it would require major dampening of the US Treasury yield impact – in both directions.
Read the full report: UBS