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28 Dec 2014
Stage set for USD lift-off in 2015 - RBS
FXStreet (Bali) - Evidence is building for a stronger USD heading into the new year, notes Greg Gibbs, FX Trading Strategist at RBS.
Key Quotes
"As the year comes to a close and the market’s attention fades, evidence builds for a stronger USD. Even as the global economic outlook has weakened in the second half of the year, the US economy is showing increased strength as the headwinds from the global financial crisis diminish. US financial conditions remain relatively easy, even as front end yields creep higher in the US."
"Yields have bull-flattened globally, except in the US where they have twisted as front end yields close the year at their high."
"Downward pressure on global yields appears likely to persist well into 2015 driven by, QE in Japan and Europe encouraging a global search for yield, fears over tepid global growth and higher debt levels in emerging market economies, and lower industrial and energy commodity prices."
"Downward pressure on global yields is accentuating the positive influence of rising front end yields in the US on the US dollar and building the case for significant gains early in 2015."
Key Quotes
"As the year comes to a close and the market’s attention fades, evidence builds for a stronger USD. Even as the global economic outlook has weakened in the second half of the year, the US economy is showing increased strength as the headwinds from the global financial crisis diminish. US financial conditions remain relatively easy, even as front end yields creep higher in the US."
"Yields have bull-flattened globally, except in the US where they have twisted as front end yields close the year at their high."
"Downward pressure on global yields appears likely to persist well into 2015 driven by, QE in Japan and Europe encouraging a global search for yield, fears over tepid global growth and higher debt levels in emerging market economies, and lower industrial and energy commodity prices."
"Downward pressure on global yields is accentuating the positive influence of rising front end yields in the US on the US dollar and building the case for significant gains early in 2015."