Over the past 6 months, the USD has shown great strength against many of the world’s currencies, as its economy has reached new highs since the financial crisis in 2008. Comparing the USD with the Japanese Yen, the same characteristics are seen where the USD spot rate has been recovering parts of its losses observed in 2006. The most imminent factor lies the recent unexpectedly robust economic growth in U.S.. In combination with expectations of further increases in the FED-rate, the market has adopted a new reality of a booming U.S. economy. Analysts have been searching for indicators that suggest that the USD/JPY has hit its peak, however, with small success, as both fundamentals and technicals show strength.

 

Analysts: Nils Billgert (MSc in Economics), Tom Ghorbani (MSc in Economics)

 

Dollar on a roll