Deutsche Bank Markets Research published a piece on Thursday with a look at the USD.
It's a look at longer-term trends.
In a brief summary of the major points:
- Say they have a 'committed dollar bullish view'
- Dollar cycle is maturing but there is at least 10% appreciation to the trade-weighted USD to go
- Dollar cycle is turbo-charged, so a deceleration may be due
- Dollar no longer correlated to risk appetite
- World's major funding currency is now the euro
- China's renminbi is the only major currency to have strengthened vs, the dollar since the up cycle began
- USD is becoming expensive, but not across all currencies... most Asian and GBP currencies remain over valued, yen has become cheap
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Their ranking of the major currencies (I've left out many of the smaller currencies), from most to least expensive:
- GBP
- USD
- NZD
- CHF
- AUD
- CNY
- SGD
- CAD
- EUR
- JPY