DB on why USD will keep rising
Analysts at Deutsche Bank believe that USD is in the big bullish cycle. The specialists expect US currency to strengthen in 2015.
In its analysis Deutsche Bank has listed factors that could disappoint USD bulls next year in order to see if they are able to put their bullish forecast at risk.
Here are these risks:
- It is now more difficult for the ECB and the Bank of Japan to surprise the markets and make euro and yen decline thus supporting USD.
- Japanese yen has already made a very big and rapid decline.
- Euro has a history of depreciating quite slowly.
- The Fed’s interest rate remains at zero.
- The euro zone’s economy recovers faster than expected.
- Risk sentiment turns positive encouraging growth in commodity currencies.
- The fact that the US has basic balance deficit can’t be ignored.
- Lower inflation is no longer positive for USD.
- Other economies rebound and the US is no longer the only one growing.
- The market is already quite bullish on USD. Important technical levels.
Still, according to Deutsche Bank, these challenges to USD in 2015 may temper the scale of the currency’s advance, but not change its direction.