The FT — among many others — seems to have called the bottom of the dollar cycle with its Thursday report citing “senior officials” in the US and eurozone agreeing - far more emphatically than they have in recent months - that enough is enough and it’s time for the dollar to strengthen.
The US currency at one point on Wednesday rallied to a six-week high against the euro; the pound is looking more lacklustre than it has in a long time against the dollar and in Asia, carry-traders are licking their chops amid predictions of further yen weakening. The question is whether the dollar rally has been overdone, or if not, how sustainable is the currency’s new display of strength?>>>MORE
