Risks building for a higher USD - RBS

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - According to Greg Gibbs, FX Strategist at RBS, the risks are building for a higher US Dollar.



Key Quotes



"I acknowledge that the price action in the USD is weak, just as the price action in US yields since the FOMC was towards lower yields. However, the risks are building, in my view, for a higher USD. US economic reports are improving, and are indeed on track."



"The US yield advantage has already improved significantly further out the curve relative to many other currencies. When the market starts to see rate hikes in the US, evident on its remarkably short horizon, the USD should strengthen (just as the GBP has on increasing risk of a rate hike within the next 12 months)."



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