Back
14 Jan 2015
USD strong but not that strong - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman suggested it is difficult to consider the dollar strong on a real broad trade-weighted measure at current levels.
Key Quotes:
"Given the relative closed nature of the US economy (exports plus imports as a percentage of GDP), the 12% appreciation of the dollar since 2011 is probably worth around 40 bp of tightening, which has been more than offset by other developments, such as asset purchases, lower interest rates, lower oil prices and rising stock market".
Key Quotes:
"Given the relative closed nature of the US economy (exports plus imports as a percentage of GDP), the 12% appreciation of the dollar since 2011 is probably worth around 40 bp of tightening, which has been more than offset by other developments, such as asset purchases, lower interest rates, lower oil prices and rising stock market".