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28 May 2013
Flash: Cyclical arguments for a strong dollar more convincing than structural – JP Morgan
FXstreet.com (London) - John Normand, for JP Morgan’s Global FX strategy teams explains that as the US labour market firms and expectations of Fed tapering build, Treasuries are under-performing almost every other bond market while the dollar outperforms almost every currency.
He went onto say at some levels the dollar appears to be benefitting from the most unusual cyclical and structural environment in 15 years as the US economy and stock market outpace most others and the country inches towards energy independence.
He added by saying the cyclical arguments for a stronger dollar are more convincing than the structural ones, since there is little evidence that either a soaring S&P or booming energy production has strengthened the US balance of payments.
He went onto say at some levels the dollar appears to be benefitting from the most unusual cyclical and structural environment in 15 years as the US economy and stock market outpace most others and the country inches towards energy independence.
He added by saying the cyclical arguments for a stronger dollar are more convincing than the structural ones, since there is little evidence that either a soaring S&P or booming energy production has strengthened the US balance of payments.