HALISTER1: USD-Strength Theme Stays Intact Even as Fed Turns Dovish: Janus

USD-Strength Theme Stays Intact Even as Fed Turns Dovish: Janus

(Bloomberg) -- Janus expects Fed to increase rates at least twice this year, paving the way for USD strength by year-end, portfolio manager Ryan Myerberg says in interview.
  • Longer-term theme of USD appreciation against currencies facing strong disinflationary pressures, easing remains still in play
  • Long-USD being unwound this week as a knee-jerk reaction to a more dovish-than-expected Fed
  • If Fed became more dovish with a much worse risk environment than now, we wouldn’t have seen the same USD long positions unwinding
  • ECB, BOJ unlikely to sit and watch their currencies appreciate strongly
  • Long-term conviction for euro remains bearish; JPY likely to be weaker on the margin
  • NOTE: Pimco says in interview that conviction in U.S. dollar strength is lower
  • NOTE: Myerberg manages portfolios in Janus fundamental fixed-income group, which had $34.9b of assets under management as of end-2015
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ryan Myerberg (Janus Capital Group Inc)

To de-activate this alert, click here

UUID: 7947283