Back
2 Jan 2015
US GDP likely to accelerate further - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, explains that the dollar continues to derive strength from the growing US economy, further anticipating the US real GDP to accelerate further in the coming quarters with growth remaining strong heading into year-end.
Key Quotes
"The US dollar has continued to strengthen early in 2015 with the dollar index rising to within touching distance of the highs from early in 2006. The dollar index has strengthened sharply since May of last year having increased by almost 15%."
"The US dollar is continuing to derive support from the relative outperformance of the US economy and building investor expectations of widening monetary policy divergence between the Fed and other major central banks. Economic data flow over the holiday period will have in general reinforced the view that the US economy continues to strengthen which will make the Fed more comfortable to begin raising rates from the middle of this year."
"Real GDP growth was revised notably higher to an annualized rate of 5.0% in Q3 following a similarly robust expansion of 4.6% in Q2. It was the fastest quarterly expansion since Q3 2003. It clearly highlights not only that the US economy rebounded strongly from the weather-related contraction in Q1 but also that the underlying pace of growth appears to have accelerated as well.”
“The annual rate of real GDP growth is now running at 2.7% and is likely to accelerate further in the coming quarters as economic growth remained strong heading into year-end."
Key Quotes
"The US dollar has continued to strengthen early in 2015 with the dollar index rising to within touching distance of the highs from early in 2006. The dollar index has strengthened sharply since May of last year having increased by almost 15%."
"The US dollar is continuing to derive support from the relative outperformance of the US economy and building investor expectations of widening monetary policy divergence between the Fed and other major central banks. Economic data flow over the holiday period will have in general reinforced the view that the US economy continues to strengthen which will make the Fed more comfortable to begin raising rates from the middle of this year."
"Real GDP growth was revised notably higher to an annualized rate of 5.0% in Q3 following a similarly robust expansion of 4.6% in Q2. It was the fastest quarterly expansion since Q3 2003. It clearly highlights not only that the US economy rebounded strongly from the weather-related contraction in Q1 but also that the underlying pace of growth appears to have accelerated as well.”
“The annual rate of real GDP growth is now running at 2.7% and is likely to accelerate further in the coming quarters as economic growth remained strong heading into year-end."