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The U.S. Dollar's Impressive Run - Will It Continue?

Central Banks across the world have decided to follow the ECB in its easing policy. The ECB plans to start buying in March Eur 50 BN every month for probably a long time. Meanwhile, the Fed said it would not raise short term interest rates... for now. But Chairman Yellen will raise rates at some point in the near future; that's a given. So why would the USD not climb higher this past month?

It was obvious since 2014 that the US economy was performing at odds with the rest of the world. Interest rates for "safe haven" bonds reached lows during the year. Yet even with ultra low rates, the differential between 10 year Treasury yields and 10 year German bunds, CHF bonds or yen bonds stands at a record, between 170 and 200 basis points. Currencies however, are not at records. The euro was once worth 83 cents on the USD. Read more