Goldman Says USD Will Outpace G10 Currencies

“We expect USD strength across the rest of the G10 complex to continue through 2015, with the USD likely posting a 7% appreciation versus the majors by end-2015 after the 10% appreciation recorded in the second half of last year.

So far, the majority of the USD TWI strength against the rest of the G10 has come from two non-Dollar factors: (i) substantial easing surprises by the BoJ and ECB and, to a lesser extent, Norges Bank and the Riksbank, alongside more dovish rhetoric from the Bank of England; and (ii) sharp falls in commodity prices have weakened the AUD and CAD.

Through 2015, we think the driver of Dollar strength will shift and that the USD will increasingly be driven by Fed policy and broader US domestic conditions.

via EFXNews

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza