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Strategy Report

The Dollar Bill Blues

by Mathieu Savary, Chief Strategist, Developed Markets ex US & Head of Research Innovation  

The dollar countertrend move has more downside, but beyond the next few months, the dollar remains in a cyclical bull market. Improvements in global growth, even if temporary, are likely to lift non-U.S. rates more than U.S. ones. The euro will benefit from that move as investors still have deep negative feelings toward EUR/USD, exactly as economic momentum has moved in favor of Europe. The SEK should outperform.

BCA Research | Foreign Exchange Strategy

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