Bank of New Zealand retains the conviction that the US dollar recovery will gain traction as 2014 progresses and into 2015.
“At the same time, our mid-2014 forecasts for most G10 pairs now look to be a stretch,” BNZ outlines the revision of its forecasts.
“This follows the very poor performance of the US economy in the first quarter of the year, related stability in US yields across the maturity spectrum and declines in market volatility that have accentuated the ‘grab for yield’,”BNZ adds.
