This via HSBC, the bank says "In our more benign, base-case scenario on trade, FX moves are likely to be a key driver of relative performance

  • as they have been in recent quarters"
  • Having depreciated significantly between late 2016 and early 2018, the USD index has since rallied by almost 10% over the past four months.
  • This has seemingly been driven by the de-synchronisation between US growth and the rest of the world, and HSBC's FX strategists believe that this renewed USD strength is set to continue for a while longer as cyclical forces remain dominant. "