No Dollar Beta-Shift (Yet)
The dollar has strengthened of late without disrupting general risk appetite. Prospects of fundamental changes in the Fed’s policy prospects have played a key role, but even outside of the US, investors appear to be taking FOMC normalisation in stride. Given the US is expected to remain one of the economic outperformers in relative and absolute terms, the dollar may entertain growth currency status again, but we note it will be a very challenging road.
Click here to read the full report: UBS