FX Alpha 14 january 2014

USD: Will 2014 finally be the greenback’s year?

Tapering, increasing real yields and positioning all argue for a stronger USD in 2014.

Believe it or not 2013 was actually not a bad year as far as the USD was concerned. The USD finished 2013 having made significant gains against higher yielding currencies within the G10 complex whilst at the same time making gains against a majority of emerging market currencies. However, consensus trades such as long USD-CHF and short EUR-USD did not fare as expected.
To know more click here PDF