Monetary policies divergence remains in place.
Following the January FOMC meeting, the Fed continues to signal its intention to start the tightening cycle in June. On the other hand, the Reserve Bank of Australia could be the next major central bank to increase its monetary stimulus. Even if the US dollar could suffer in the short-term given less positive domestic data (especially in capex), the divergence in monetary policies between the Fed and the other major central banks calls for further medium-term strength.
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