The dollar and the age of disinflation - SocGen

So the dots moved for the FOMC and this caused much excitement in bond-land, and the FX market has followed faithfully behind, with the dollar index at its best level in almost exactly 14 years notes Kit Juckes, Research Analyst at Societe Generale.

Key Quotes

“We’re not at the highs yet, as global equities shrug off the yield move and recover their poise. We’ll likely see parity for EUR/USD and 120 for USD/JPY a lot sooner than expected, as usual. The markets have embraced the idea that the Age of Disinflation is over, and for now, the markets are not listening to any arguments to the contrary. So, Happy Christmas to equities and the dollar. Tougher times should return in due course.”