Renewed upward momentum for the US dollar has been reinforced - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that the US dollar has continued to strengthen sharply following the US electiontvictory for President elect Donald Trump. 

Key Quotes:

"The US dollar index has now increased by almost 8.0% from the intra-day low on the 9th November moving further into deeply overvalued territory according to our long-term valuation models."

"Renewed upward momentum for the US dollar has been reinforced by the more hawkish signal sent from the Fed at their latest policy meeting."

"The Fed resumed monetary tightening as expected by lifting the target range for the Fed funds rate by 0.25 percentage point."

"The main surprise was that the Fed signalled that it now plans to raise rates further by three times in 2017 up from the two hikes signalled back in September."