USD to continue to rise during 2016 - Wells Fargo

Analysts from Wells Fargo, explained in the monthly outlook reportthat they expect the US dollar to continue to rise in the year ahead.

Key Quotes:

“We anticipate that longer U.S. benchmark rates will rise less so that the yield curve and will flatten out in the year ahead. Given the rise in the funds rate and continued uncertainty over global growth, we anticipate the dollar’s value will continue to rise in the year ahead.”

“Given the rise in the funds rate and continued uncertainty over global growth, we anticipate the dollar’s value will continue to rise in the year ahead, although the extent of the gain will be more modest than in 2015.”

“Over the past year, the sharp rise in the dollar has been concentrated in three of our major trading partners—Canada, Mexico and the Eurozone. Meanwhile, the dollar appreciation against China and Japan has been quite modest. Yet, the driving factor for the U.S. trade position has been global growth and the disappointing outlook for growth limits trade improvement.”