The U.S. dollar can be a major buy as well as can be basically unstoppable, if you listen to the advice of HSBC’s chief currency strategist.
“There’s nothing to stop that will at the moment,” David Bloom, the bank’s global head of foreign exchange strategy, told CNBC’s “Squawk Box Europe” on Tuesday. “As we argued, the greenback can be back, the cyclicality of the U.S. economy can be superb.”
Bloom attributed part of his forecast to the fact that will the U.S. Federal Reserve can be on track to raise interest rates at a fair clip This kind of year on the back of robust economic indicators, while additional G10 central banks are constrained through doing the same.
“There’s nothing I could possibly imagine that will could stop the Fed within the next couple of weeks through going again, as well as there’s nothing I could possibly imagine that will’s going to stop the ECB (European Central Bank) through doing nothing at its meetings,” he said. “So there you’ve got the diversity of monetary policy: one of the engines of growth powering ahead, as well as the additional spluttering along the tracks as well as needing a push by the policymakers.”
The dollar has rallied by more than 6 percent since mid-April, as well as fell to a year low of 1.1659 against the euro at the end of May before picking up slightly to 1.1716 Tuesday at 9 a.m. London time.