Societe Generale: USD rally is not over
According to analysts at Societe Generale, a slightly more dovish Fed shouldn’t really be a game-changer. USD still is very from reaching the peak, they say.
"We knew that the dollar’s rally was stretched and we know the Fed’s cautious bias when it comes to contemplating any kind of movement towards tighter policy," analysts explain. A strong dollar could create some downside risks, but these days the currency is still far from that: “USD would have to go much, much further in order to have a meaningful impact on inflation or growth”.
"We’ll go back to watching the US economic data after a bearish correction on USD. A rate hike is still likely in June 2015", analysts project.