Bank analysts (can't name the bank sorry) on yields, the Fed and US dollar.

Say that it is too simplistic to assume that the USD will depreciate thanks to an upturn in synchronised global growth

  • evidence shows that higher US growth relative to the rest of the world combined with higher US yields results in the USD appreciating

Forecasts:

  • USD/JPY to 108.00 over the next 6-12 months
  • If EUR/USD drops under at 1.20 forecast 1.18
  • AUD/USD to 0.79 in 6 to 12 mths

(not outlandish those forecasts ...)

Risk to view for a stronger USD:

  • If the FOMC were to engage in some sort of YCC or initiate operation twist, this would see the USD fall further (not the analysts view though)