USD: Bearish consensus - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that dollar bulls point towards a bearish consensus, as well as a hawkish shift in the balance of the FOMC.

Key Quotes

“Fair enough, though Administration's policy mix will remain an anchor around the dollar's legs. More important to the fate of EUR/USD however, is where the European economy is headed in the months ahead. Like the US, it suffered a slowdown at the start of the year and, like the US, I suspect it is going to do better in Q2 than in Q1. As for ZEW, it seems to me to be a lagging rather than a leading or coincident indicator of anything. Still, maybe that all means the break (up or down) in EUR/USD will just have to wait for Q2 data to start appearing in Europe.”