The price has gone up. The event of the week in financial markets was the increase in the US Federal Reserve base rate
The US Federal Reserve raised the base interest rate by 25 bpsbasic pointov, up to 0.5-0.75percent per annum. “In light of realized and expected conditions in the labor market and in the field of inflation, the Committee decided to raise the benchmark for the federal discount rate. The approach to monetary policy remains accommodative and supports further improvement in labor market conditions and a return to two percent inflation,” the American regulator said .
Lessons from crises: do countries learn from mistakes?
In December last year, the financial regulator raised the rate by 25 basis points - from 0-0.25 percent to 0.25-0.5 percent. Previously, the basic discount rate was raised only in June 2006, and from December 2008 to December 2015 it remained practically at zero - 0-0.25 percent, which was accompanied by the largest issue in US history. Now the Fed predicts three more interest rate hikes next year, although previously it expected two. The Fed also raised its forecasts for GDP and unemployment by one-tenth of a percent, and for inflation by two-tenths in 2016.
Almost none of the analysts doubted that the US Federal Reserve would raise rates, which would lead to an influx of currency into the country, the purchase of securities and a strengthening of the dollar. The site talked about how this decision will affect the economy political scientist and publicist Leonid Krutakov.
— How will Donald Trump implement his promises in the new conditions? After all, with The real dollar is a decline e American exports, which is beneficial primarily to China, and uv increase in debt.
— Not an increase in debt, but an increase in debt servicing. Their debt arises from deficits, both trade and budget. They already have a colossal one. Therefore, the debt will grow, that's for sure. And Trump will increase it, they have nowhere to go. In fact, now in the United States there is a struggle for a magic machine that will turn US debts into investments for the world.
The most important trick that the Americans managed to achieve, starting with the conclusion of the Bretton Woods agreements, is that the country - the main debtor of the world - is its main creditor. That is, they turned their debts into loans for other countries. And that's why all the struggle is here. Will they be able to maintain this debt model or will they fail? If it fails, there will be an internal explosion of this bubble. Last time they raised the rate by 0.25, but the market practically did not react to this. Because the debt is colossal due to interest.
Fed rate - . Therefore, it turns out that they pay extra to those who took money from the United States. It is not the one who took the loan who pays, but the one who borrowed. This is generally an amazing situation, and the United States needs to solve this problem first of all, because they are eating up the income of the future, pension funds, social funds that they have. Because if it’s minus, it means they are spending what they have saved up. That is, a negative rate kills the future. And America is now squeezed. On the one hand, there is a colossal external debt that must be serviced, on the other, a low Fed rate.
In fact, it’s like you bring money to a bank, but you pay that bank for holding that money. And in Europe it’s the same, there is also a negative Central Bank deposit and a zero ECB rate for inflation.
It turns out that this is some kind of new economy that still needs to be seriously comprehended, to understand how it works and where it leads. That she's blowing bubbles, of course. Therefore, America is now between two millstones. And even the raised rate is still below inflation. And America will continue to eat itself.
— Trump intended to change the leadership of the Federal Reserve. What can Trump do with this system? How does the Fed influence global finance and the central banks of other countries?
— There was one president in US history who tried to take away the investment function from the Federal Reserve and subordinate it to the US Treasury, so that the US Treasury would deal with it directly. It was Kennedy. The Federal Reserve System is not subordinate to the US Administration, it is a commercial structure formed by 13 private banks, where, in particular, German capital is very seriously represented, because it is one of the parties to the agreement on the creation of the Federal Reserve System. There was a German banker who later became Hitler's main banker. The Fed has a very complex system. But something else is more important here - under this system created by the United States, they actually forced all Central Banks to withdraw from their state status - both European and Russian.
That is, our Central Bank is semi-formal in nature - semi-private, semi-state. It seems to be located on the territory of Russia and seems to be subordinate to Russia, but at the same time it is not formally subordinate to it, but is actually a division of the Federal Reserve System and prints derivatives for the dollar.
This is not an independent unit, because it is not provided with internal industrial resources, but with external dollar reserves. There was a substitution of national monetary units, and thanks to this, a system became possible for the United States when they turned their debt into investment.
That is, the United States prints money on credit and gives it to everyone - Russia, China, etc. Accordingly, these countries use it as investment. Such a magical “cook a pot, don’t cook a pot.” In America now this problem is the most important, because they are stuck in terms of expansion.
This system can only work when the dollar zone absorbs new capital assets, new economies. While the privatization of Eastern Europe and Russia was going on, while the seizure of Iraq and Libya was going on, while the dollar zone was being provided with new real industrial and raw material assets, this system worked.
But as soon as they politically ran into Russia, Syria, as soon as China told them: we will not give up the state status of the People’s Bank of China (they protect their internal financial system from the external market) - this became a huge obstacle.
This year, according to which China was obliged to make the People's Bank a non-state, the same as we have in Russia, a division of the Federal Reserve System. But China, at the recent APEC summit in Libya, frankly told Barack Obama that it would not do this. Now the US faces another dilemma. Or declare China a non-market economy and exclude it from the WTO - but then so many contracts collapse that the United States does not know what to do. Or not give any reaction, but the States also cannot behave this way and do not know how to react.
Now the United States has so many problems that it’s scary to imagine how they will get out of this. This is a protracted, severe crisis. Trump is the harbinger of this crisis, or rather, the first rumble of thunder of the crisis. Will he be able to do something, reconstruct this system, or will it go on a rollercoaster ride, as Clinton wanted, with further global expansion? At least, Trump announced that there would be no expansion, but the creation of his own project on controlled territory - in Canada, Mexico, Europe...
For them the situation is twofold. This is Triffin’s paradox; he formulated it back in the 1960s. On the one hand, the dollar is a global currency - reserve and settlement, and on the other hand, it is national in nature, used internally and is subject to national interests. At least that's what is declared.
Therefore, when you accept the dollar as a measure of your domestic policy, you must understand that the US national interest is embedded in the dollar. Because money is not a fetish, not golden bars that can be exchanged for anything. Money is government obligations.
— Is it still as dangerous to engage in a fight with the Federal Reserve today? And how can the USA stillgutprevent the collapse of the dollar bubble?
— The financial overhang is 10 times the total global product. At the same time, not the entire total world product is subordinate to the dollar and is located in the dollar zone. A lot of things happen through swaps, China through barter works with Africa and the Middle East in many transactions. When we calculated the turnover of China and Africa, it turned out that in terms of metals they make the second turnover of the London Metal Exchange. This is actually a hidden turnover.
Of course, we must understand that with this dollar overhang they must either absorb the whole world or come up with some new unconventional assets. This was stated in the services agreement. For example, about the need to privatize the housing and communal services sector, state defense procurement, housing and communal services, education, and medicine.
These are the assets that England, for example, is proud of: education and medicine are assets that are not yet traded. They either need to be brought into circulation to support the dollar, because money requires assets more than assets require money. Assets need money for development. And barefoot and empty money needs assets to fill it, otherwise it will explode.
Therefore, there are two ways: capturing the outside world - China, Russia, continuing expansion, capturing energy resources and transferring them to your balance sheet. Because now Westerners are not allowed to have more than 20 percent of shares within our companies.
This was one of the terms of the agreement after YUKOS - up to 20 percent, please buy, trade on your exchange. For example, BP bought 18 percent of Rosneft. Now BP can trade all of Rosneft’s reserves on the stock exchange as its own, putting it on its balance sheet. And this is a colossal increase in capitalization. The formal principles approved by the United States that we can put on the balance sheet do not mean that they can actually manage these resources. We saw this in the Middle East, we also see it in Russia, which is now reorienting itself to China and India for gas and oil supplies.
Therefore, the United States has two options. Either expansion, but that was Clinton, or they limit their project to the Western Hemisphere, creating the so-called Great West. Then they will need to carry out a new wave of privatization, both in South America and in Europe, where it will be possible to privatize the housing and communal services system, education, all kinds of social functions up to defense procurement, stipulate that the state is prohibited from protectionist measures in the field of government procurement.
That is, let’s assume that we have acceded to these agreements. Then General Motors wins the contract to supply cars to the Ministry of Defense, and we cannot do anything. These will be the new rules that are dictated there. This is not the case, so the United States is balancing on the brink in terms of rates, walking by a thread.
The devaluation factor for the development of the dollar, which they have been using for a long time, has also been exhausted. They overstrained themselves trying to break Russia when they brought down the price of commodities to the limit. They've inflated the corporate, speculative stock market so much that they don't know what to do with the money.
Giving money to Russia or China is the same as financing a competing political project. The point is not even in the economy, but in the fact that “if we give money to Putin, he will drill wells, and with this money from the sold oil he will set up missiles and all sorts of aircraft, and then in Syria he will give us a kick in the tail.” That's the problem for them.
And the money has been accumulated, lying in bags, but they cannot push it onto the market in developing countries, in Asia, in Russia, because they are politically prohibited. No one will pump up their competitor, but they don’t have any internal reserves where to develop, or what to invest this money in. They do not have their own industry, only service services - a service economy, where show business and supermarkets flourish, but there is no industry.
Or they must absorb some new assets and make them marketable. Hence such exotic topics - they passed a law that American companies have the right to develop natural resources on asteroids and on other planets. That is, it seems like nonsense from the realm of idiocy and Ward No. 6. On the other hand, this allows them to somehow verbally stimulate the financial market, which does not know where the money is. We have swelled with this huge bubble, but what to do with it?... Here is the problem - both debt and a financial bubble at the same time.
They themselves created such a colossal problem for themselves. They hoped that they would fail, break through the defenses of Russia and China and break into these markets. Back in 2008, the Americans wanted to open up the markets of Brazil, India, and China, but they said that we would not open our domestic market for you.
When this political round failed, then their financial crisis hit us, and the whole story of pumping up the economy, quantitative easing, both in the US and in Europe began. Because they needed to pay for the losses that their banks suffered from the inability to work with China, Brazil, India and Russia on the terms of these countries, and not on the terms of the United States.
Interviewed by Galina Tychinskaya
Preparedfor publicationYuri Kondratyev
This week the economic press talked a lot about the Fed meeting, from which everyone expected to hear something new regarding interest rates. And in the end, they heard - an opaque hint that someday or very soon the regulator will begin to change the base rate. However, as CNN-Money writes, many Americans are not at all aware of what the Federal Reserve System is doing and that its head, Janet Yellen, may change something very soon.
Already in June of this year, the Fed may do something that it has not done for a very long time - raise interest rates. But it's time for people to realize that rising interest rates will affect everyone who has a mortgage, car loan, savings account or money in the stock market. In short, life is about to get better for savers and a little more difficult for borrowers. Investors may also face difficult times.
"The losers will be the borrowers and the winners will be the savers," says Ted Peters, CEO of Bluestone Financial Institutions Fund and a former member of the Federal Reserve Bank of Philadelphia.
Here is a complete list of results from the rate increase.
1. Mortgage rates and real estate prices will rise: having received a signal from the Federal Reserve that rates will soon be raised, many borrowers will rush to complete transactions now. The country has already begun a large influx of applications for mortgage loans, and some are simply asking to refinance an old loan in order to lock in lower interest rates. "People thinking about buying a home need to act quickly to get deals done in today's low rates," says Dean Croshore, an economics professor at the University of Richmond and a former Philadelphia Fed economist. The average 30-year mortgage has an interest rate of 3.8%, according to Freddie Mac. Compare with last year - then the average rate was about 4.3%. Part of the Fed's rate cut to historic lows in 2008 was to "reset" the housing market, which had collapsed when the housing bubble burst. When the Fed raises rates this year, it will certainly push up mortgage and auto loan rates.
2. Successful investors. Since the last financial crisis, people who put their money in the bank have received almost nothing because interest rates are so low. Things are about to change for the better for those with savings accounts. Once the Fed raises interest rates, deposit rates should rise as well. The average interest rate on a savings account right now is just 0.44%, according to Bankrate.
3. Work, work, work... One of the main reasons why the Fed plans to raise interest rates is the improvement of the US economy - especially the situation in the labor market. Unemployment is falling to its lowest level since 2008, and the US added millions of jobs last year. "The labor market is improving," Yellen said Wednesday. “Some of the headwinds that have been accompanying the economy are starting to recede.” Economists are now more concerned that rate hikes could hurt future wage growth. Many Americans did not feel the success of the economic recovery because their wages did not increase. The Fed wants wage growth to be 3.5%, but it was only 2% in February. However, Yellen has made it clear that rising wages are not the deciding factor to raise interest rates. Wages are usually the last in line to rise during economic recovery.
4. Rocky road for stocks: The stock market was rattled on Wednesday after the Fed's official statement. Investors largely reacted sharply to the Fed's announcements, suggesting the central bank will not raise rates in April and will likely raise them only slightly in June or later. Any rate hike will almost certainly increase volatility. The stock is already considered expensive, and many analysts on Wall Street are afraid of an unexpected correction (where stocks drop 10% or more at once), something that hasn't happened since 2011. “Overall, stock prices are at high levels, but not beyond all-time highs,” Yellen said Wednesday. Raising Fed rates could make stocks less attractive to investors. It would also make sense to raise interest rates on US bonds, which are considered safer investments.
The Open Market Committee of the US Federal Reserve System (FRS) raised rates for the second time in a year. Following the meeting that ended on June 13, the rate increased by 25 basis points to 1.75-2%. The Federal Reserve also expects rates to rise twice more this year. Previously, only three increases were expected per year.
The Fed is guided by the fact that unemployment and inflation are exceeding target levels faster than previously predicted.
A so-called "dot plot" of hikes released Wednesday showed eight Fed policymakers expected four or more quarterly rate hikes throughout the year, up from seven during the previous forecast round in March, .
The normalization of the Fed's monetary policy leads to a strengthening of the dollar against other currencies and an increase in the yield of US Treasury bonds. Together with an increase in borrowing, this gives the effect of a dollar vacuum cleaner - investors are withdrawing funds from emerging markets.
“The ruble, like other currencies of developing countries, is feeling pressure from the “American”, which is strengthening against the backdrop of the Fed withdrawing dollar liquidity from the market and investor expectations regarding tightening monetary policy in both the US and the EU. All this forces players to withdraw money from risky assets, exchange them into foreign currency and invest in reliable American and European securities,” explains , an analyst of the social network for investors eToro in Russia and the CIS.
The American currency still has room for further strengthening. In the event of further tightening of monetary policy, it may well “please its holders with growth course"adds the analyst.
The trend for the strengthening of the US dollar across the entire spectrum of the market, including in relation to the Russian ruble, has been very clear since the beginning of the year, agrees the expert of the International Financial Center.
In addition to the strengthening of the dollar, the ruble was hit hard by US sanctions, and in the future this factor will put additional pressure on it, she adds.
Sanctions imposed in early April against , and their companies ( and ) caused the flight of foreign investors from Russian assets.
According to the Central Bank, as of May 1, 2018, the share of non-residents in Russian federal loan bonds amounted to 2.22 trillion rubles. or 32.3% of the total face value of issued securities. As of April 1, the figures were 2.351 trillion rubles. and 34.5% respectively. Thus, in April, non-residents got rid of securities worth 131 billion rubles.
According to the assessment, elevated levels of corporate debt may increase concerns about maintaining financial stability and affect investment. Since the global financial crisis, corporate debt—and, in some countries, foreign currency debt—has been growing rapidly, increasing corporate vulnerability to rising borrowing costs.
“Policymakers in emerging and developing economies need to be prepared for possible outbreaks of instability in financial markets as monetary policy normalization accelerates in developed countries,” said Ayhan Kose, director of the World Bank’s Economic Outlook Department.
Rising debt levels increase countries' vulnerability to higher interest rates. “This underscores the need to create cushions against financial shocks,” says a World Bank representative.
The management of the Bank of Russia, headed by it, has repeatedly stated that it does not see a problem in the outflow of funds from non-residents. There will be no spending of gold and foreign exchange reserves (their volume as of June 1 amounted to $485.6 billion) to maintain the ruble exchange rate.
While expensive oil is preventing the dollar from going beyond 65 and further to 70 rubles, quotes which remain around $75 per barrel of Brent. But as early as next week, participants in the + deal (OPEC countries, Russia, etc.) may soften oil production quotas, which could lead to a drop in prices. Along with oil, the ruble will also fall in price. Given the Federal Reserve's planned rate hikes, the prospects for the Russian currency are gloomy.
) The United States raised its base money market rate for the third time in 2018 by 25 basis points. Now it will be in the range of 2-2.25%.
The decision to raise the rate was made unanimously by representatives of the Federal Open Market Committee (FOMC). The FOMC usually raises it to prevent inflation from accelerating and the economy from overheating.
Since the committee's last meeting in August, macroeconomic statistics have shown that the labor market continues to strengthen and economic activity is growing steadily, the FOMC said in a release. The unemployment rate in the US remained low, the number of jobs grew, as did household spending.
“Consumer spending and business fixed investment grew at a rapid pace,” the document notes.
At the same time, annual inflation remains around the target of 2%.
The Fed's decision coincided with the forecasts of the vast majority of economists and market participants. This is exactly the kind of moderate, rather than aggressive, rate increase that was predicted by the experts interviewed by Gazeta.Ru.
The Fed said in a statement: “In determining the timing and size of future adjustments to the target interest rate range for federal lending funds, the committee will evaluate both actual and expected economic conditions relative to its targets of maximum employment and 2% inflation.”
At the same time, at the previous committee meeting, held on July 31 - August 1, the regulator made it clear that it intended to raise the rate twice more, in addition to the previous two increases.
Let us recall how the Fed rate has increased recently. At the end of 2015, the Fed raised the base interest rate from near zero to 0.25% for the first time in almost 10 years.
In 2016, the rate was raised once to the level of 0.5-0.75%. In 2017, it increased three times. Since 2018, the rate has been increased twice, in March and June. And in 2019, the American Central Bank made it clear that it could increase it three times.
As the chief analyst of BCS Premier explains,
investors will continue to expect another hike before the end of the year and at least two hikes during 2019: monetary policy will continue to tighten in order to protect the economy from overheating.
At the same time, US stock indices add 0.3-0.7% on news of an increase in the base rate.
Experts say that the current decision of the Federal Reserve has already been built into the current quotes, so it is unlikely to affect course dollar.
However, if the US Federal Reserve decides to tighten monetary policy in the near future, this could lead to a depreciation of the ruble.
According to Anastasia Ignatenko, leading analyst at TeleTrade Group, even the Federal Reserve’s rhetoric that monetary policy will be tightened can be a reason for a sharp strengthening of the American currency.
An analyst at Freedom Finance says that
The aggressive rate hike by the US Federal Reserve leads to the draining of capital from emerging markets and this, naturally, puts pressure on the currencies of developing countries.
Meanwhile, the head on Wednesday, September 26, advised Russians not to make emotional decisions about buying and selling currency.
The minister also assured the people of Russia that policies and governments will ensure sustainable development of economic indicators. He emphasized that Russian macroeconomic policy is aimed at ensuring long-term stable exchange rate dynamics.
Oreshkin confirmed the forecast for the dollar exchange rate at the end of the year, previously approved by the Ministry of Economic Development, at around 64 rubles.
“Now the rate has dropped below 66 rubles per dollar. Our forecast for the end of the year, as I said earlier, is around 64 rubles per dollar. These are the levels where the ruble should fundamentally be in the current conditions, so around these values the exchange rate should be expected until the end of this year,” Oreshkin said.
The official dollar-ruble exchange rate, set by the Central Bank on Thursday, was 65.76 rubles, according to Central Bank data.
This analytical article was written after the closure of the American market.
The last time the Federal Reserve tightened monetary policy was in December 2015, but that will change soon. Tomorrow, since the US central bank preparing to raise rates for the first time this year. A lot has changed over the past 12 months, but monetary policy decisions still have a big impact on the foreign exchange market, especially when the central bank is expected to make significant policy changes. Last December, the Fed was preparing for its first rate hike in a decade, and while tomorrow's policy change has less historical significance, it would still be the first tightening in 12 months.
Everyone is waiting for the Fed to raise rates, so will the dollar fall or rise when it does?
Rate hikes are usually good for the value of a currency, but in this case the US dollar hit its highest level in months ahead of the meeting and the market is pricing in a 100% chance of a rate hike based on fed funds futures. In other words, everyone is expecting the Fed to raise rates, so the question is whether the US dollar will fall or rise when it does. The response has huge implications for the foreign exchange market, as recent movements in all major currencies, including sharp falls in the euro, Japanese yen and Australian dollar, have been driven by the strength of the US dollar.
When the Fed raised interest rates in December 2015, the dollar initially continued to rise and then reversed sharply, causing it to fall from a peak of 123.57 to 116 in a month and fall to 111 within two months. At the time, the market was pricing in the possibility of a rise rates at 75%, not 100%.
We see three possible scenarios after tomorrow's Federal Reserve meeting, but before we look at them, it's important to understand why the Fed is willing to raise rates. Officials have been talking about raising rates for months, and two members of the monetary policy committee (Loretta Mester and Esther George) voted in favor of raising rates back in November. The table below shows the broad-based positive changes in the US economy since the November Fed meeting. We see that consumer spending grow, pace increase in the number of employed increased, unemployment rate fell, consumer prices have grown and the real estate market is stable. Height GDP was very strong in the third quarter, helping US stocks reach record highs. These positive developments raised concerns among the Fed that inflation would rise too quickly in the future, and to prevent it, officials began almost unanimously hinting that rates would be raised before the end of the year.
When Donald Trump was unexpectedly elected President of the United States, it completely changed the situation in the financial markets. US stocks turned around and went higher, reaching a record high, and the yield on 10-year government bonds exceeded 2% for the first time in 11 months. As a result, the dollar soared by 5%. The changes will impact the Fed's plans as soaring yields and a stronger dollar tighten the economy, raising borrowing costs and increasing the cost of exports. In other words, recent changes in financial markets have done some of the Fed's work for it and reduced the need for another tightening in the near term. This explains why there is no more than a 50% chance of another rate hike in the first five months of next year, based on fed funds futures. For Fed Chair Janet Yellen, whom Trump has repeatedly criticized and threatened to remove from office, it is also the last opportunity to tighten policy before Trump becomes president and tries to put pressure on the central bank.
Following the rate hike in December, investors believe another 25 basis point hike will not occur until June 2017 at the earliest.
As for how the Fed's monetary policy decision will affect the US dollar, we don't think the US currency will react significantly unless policymakers surprise the market by raising rates by 50 basis points or leaving them unchanged - both of which are extremely unlikely. Instead, the main impact on the market will not be the rate increase itself, but forecasts and plans for the future. In September, officials planned to raise rates by 50 basis points over the next year, so if the forecast includes three or more rate hikes next year, the dollar will rise. If, like the previous one, it provides for two increases, the dollar may fall.
Three scenarios for the December Fed meeting and its consequences for the US dollar
Scenario 1 - Fed hikes rates, Yellen doesn't announce future plans
If the Fed raises rates and Yellen does not provide any information about the timing of the next rate hike, the US dollar could fall. Considering how quickly and aggressively the dollar has been growing over the past month, the market has long been ripe for profit-taking. While some of this strength is due to Trump's spending plans, he is not even president yet and the market is acting as if he is implementing a massive fiscal spending program. Structuring the program and gaining congressional approval could take much longer than the new president expects, and the final version of the program could be much less impressive as senators worry about how expensive it will be. Therefore, unless Yellen can convince markets that rates will be raised again in the first half of next year, the dollar could face a 1-2% correction.
Scenario 2 - Fed hikes rates, Yellen makes clear there will be an extended break
If the Fed raises rates and Yellen speaks out about the implications of higher yields and/or confirms that further rate hikes will be data-driven—that is, makes no promises about further rate changes—the dollar will also fall, and at a faster rate than in the first scenario . Taking profits before the end of the year is common, especially after the significant movement in rates that we have seen over the past month, but in this scenario the fall will be prolonged and selling the dollar will be profitable even as it falls. We think the biggest movers will be USD/JPY and EUR/USD- the two currency pairs that fluctuated the most due to the strengthening of the dollar, but do not forget that in this scenario all currencies will rise relative to the dollar.
Scenario 3 - Fed hikes rates, Yellen stresses need for further tightening
If the Fed raises rates and Yellen is upbeat about the economic outlook, expresses concerns about rising inflation and stresses the need for further policy tightening, the US dollar will soar. We think USD/JPY will easily reach 115, EUR/USD will break through 1.05, and AUD/USD will move towards 0.73. Judging by Fed Funds futures, investors are not expecting a strong hawkish stance and clear plans for the future, so in this scenario the strengthening will continue for many days or weeks.
Despite the options outlined above, the December Fed meeting could be a big disappointment in terms of market volatility. The road to it was long, so investors had plenty of opportunity to prepare. The first scenario is the most likely because yields have risen and the Fed needs time to figure out how much fiscal stimulus the Trump administration is able and willing to provide. Yellen will not promise anything and dollar bulls will be disappointed, giving investors a reason to take profits on long dollar positions before the end of the trade. This doesn't mean the dollar's strength is over, but demand is likely to become more bipartisan.
Katie Lien, Executive Director, Currency Strategy, BK Asset Management
