Well, here's another bullish piece for the US dollar ... the Wall Street Journal have an article up saying:
A roaring dollar rally could get a boost this coming week with the release of data that many investors expect to provide fresh evidence that central banks are embracing the greenback.
International Monetary Fund figures on global foreign-exchange holdings for the fourth quarter of 2014 are likely to show central banks piling into the dollar and lightening up on the euro, traders and analysts said. The IMF data, known as Cofer for Currency Composition of Official Foreign Exchange Reserves, are expected to be released Tuesday morning.
So, central banks buying US dollars from September to December last year should provide fresh impetus to buy the USD this week?
Really?
Huh. OK, then. Sounds a bit far-fetched to me, though.
(Here's the article: Dollar Watchers Look to IMF - may be gated)
HSBC, though, are a little more restrained ...
- analysts said that the dollar's bull run "is nearing its end," given how much the currency has already rallied
- While most banks predict the euro will decline against the dollar next year, HSBC sees the currency rising to $1.10, versus $1.0890 Friday
- "The drama offered by policy divergence has already run its course," analysts at the bank said in a note to investors. "Valuations show the dollar is nearly the world's most overvalued currency."
