US fiscal imbalance 'out of control', but a strong offsetting positive factor for the USD
BMO on a supportive factor for the US dollar, despite a fiscal imbalance that is "out of control."
- fiscal fundamental is the more important fundamental
- but we acknowledge that the energy independence fundamental could offset it for several years
- thereby prevent the fiscal factor from denting the dollar
So, BMO citing energy-independent US:
- country not vulnerable to a supply shock
- Energy independence "has to be a positive factor for the USD"
BMO also recognise the Fed share of credit for the USD gains in 2018.