FX : Dollar could appreciate on the mid-term as U.S. economy recovers - National Bank Finantial
FXstreet.com (Barcelona) - The Dollar has been used as safe haven for about 20 months, since the recent crisis started, a scenario, which could be heading to an end as signs of economic recovery start to show, which, according to the National Bank Financial Strategy Team, could translate into a stronger Dollar. on the back of U.S. economic growth
The National Bank Financial foresees a period of strong job creation in the U.S. followed by rate hikes by the fed: "The keystone of our currency scenario is an imminent return to job creation in the United States, which will force the financial markets to price in key-rate hikes by the Fed. Despite the colossal budget deficit, these cyclical forces should be enough to give the USD a second breath, at least over the short term."
EUR/USD, according to the National Bank Financial, will decline to 1.3900 in the third quarter of the current year, to end the year by 1.3500 and dip to 1.3300 in the first quarter of next year, to continue to 1.2800 in the second quarter and to 1.2500 in twelve months time.
