Petr Krpata, a foreign-exchange strategist at ING (NG Groep NV topped Bloomberg's rankings of foreign-exchange analysts for the second quarter in a row) says its time time for investors who bailed on the dollar in the past few weeks to get back in
- Says speculation the Federal Reserve will delay raising interest rates, in part because the dollar's strength is hurting U.S. economic growth ... that concern is overblown
- "The market is now pricing in a very subdued pace of the tightening cycle -- we disagree"
- "We just see the latest correction as a perfect opportunity to get into the trade again"
- "The stronger dollar doesn't necessarily have to change the U.S. economic prospect"
Exports account for only 14 percent of the American economy, according to World Bank data. That's the least among Group of 10 nations, and compares with 30 percent for Canada, 46 percent for Germany
- ING forecasts EUR/USD parity by mid-year, 95 cents by December 31
Bloomberg report, comments from Krpata in a telephone interview April 1
But, not everyone loves the USD so much ...
Saxo Bank (ranked #3 by Bloomberg & the best forecaster for the euro-dollar pair after being the most bullish on the greenback at the beginning of the year...:
- Says USD rally may be exhausted
- "Most of the move is done," John Hardy, head of foreign-exchange strategy at Saxo Bank in Hellerup, Denmark, said in a April 4 telephone interview. "There could be some more in it, but increasingly it's going to become a two-way trade."
