The dollar seen higher in the next months – UOB

UOB Group’s Heng Koon How, CAIA, Head of Markets Strategy, Senior FX Strategist Peter Chia, Rates Strategist Victor Yong and Market Strategist Quek Ser Leang give their views on the dollar.

Key Quotes

“For the USD, we keep our prevailing view that the USD will continue to strengthen against both the Majors and Asian currencies as the FED embarks on tapering of asset purchases.”

“In mid-August, the US Dollar Index (DXY) traded up to about 93.70, its highest since last November after the minutes of the July FOMC meeting showed most officials agreeing that tapering could begin “in coming months”, setting the stage for an announcement by December.”

“While the DXY gave up some of its month-to-date gains after recently concluded Jackson Hole Symposium (27 Aug), its recovery since June remains intact. Net long USD positioning, as indicated by CFTC FX futures data, jumped to the highest since last March, of about USD 8.2 bn.”