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Bonds, USD will stay strong as rates rise

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With sluggish growth, many central banks will most likely allow their currencies to weaken. Investors may already be long USD, but against such a backdrop it is hard to see what could weaken the dollar much anytime soon.

INVESTORS now seem to be fairly well set up for a US Federal Reserve interest rate hike in December and even among those who are more dovish, the majority still expect lift-off at some point in the coming months.

It feels that the hurdle to policy normalisation has been lowered since the