US Dollar Trades Mixed in Sign of What Could Come in 2015

US dollar is trading mixed today, and that could be a sign of what could come in 2015. Indeed, while the dollar is expected to remain relatively strong, it is likely to do so in fits and starts, and the recent rally will be hard to maintain as long as the Federal Reserve remains “patient.”

Much of the dollar’s recent rally strength has come from expectations of policy divergence. The Federal Reserve is expected to raise rates — and has been expected to raise them sooner rather than later for some time. However, the slowness of the Fed has been weighing a little bit on the greenback, and signs that other economies might be catching up are allowing different currencies to gain some ground.
The dollar is expected to maintain strength next year, even though it will be challenged somewhat. There is speculation that a BRIC development bank could impact the strength of the greenback going forward.
At 11:37 GMT the US dollar index is a little lower, dropping to 89.7570 from the previous close at 89.7700. EUR/USD is gaining some ground, rising to 1.2229 from the open at 1.2226. GBP/USD is lower, though, falling to 1.5560 from the open at 1.5581. USD/JPY is higher, moving up to 120.0820 from the open at 120.0630.

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