The USD has remained ascendant over the past month, and rightly so. Even for the pessimists who note the US economic recovery has been anaemic relative to history, it is the ‘least bad’ option amongst the major economies. The need for the Bank of Japan to step up its easing programme (and the likely scenario where the ECB is forced to do the same) simply underscores the divergence in monetary policy stance in the US vs the rest of the world.
Read the full report: FX Strategy