Byron Wien gave his US Dollar outlook for 2010 in his annual list of surprises to expect in 2010. Wien is one of the best known Wall Street veterans and has been publishing his list of economic, market and political surprises since 1986:
"Because it is significantly undervalued on a purchasing power parity basis, the dollar rallies against the yen and the euro. It exceeds 100 on the yen and the euro drops below $1.30 as the long slide of the greenback is interrupted. Longer term prospects remain uncertain."
Byron also expects the Federal Reserve to begin tightning monetary policy in the second quarter:
"The Federal Reserve decides the economy is strong enough for them to move away from zero interest rate policy. In a series of successive hikes beginning in the second quarter the Federal funds rate reaches 2% by year-end."
1 comment:
Soo why is the dollar undervalued according to him?
Make a comment on why he ignores the extreme budget deficit and trade balance...The dollar was way weaker before the Subprime crisis, And we have not fallen back to those levels yet.
Soo don't understand how expert can say it's undervalued. US it the economy that is still suffering the most
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