USD: Are divergence trades dead? – Deutsche Bank

The risk pendulum could swing after April FOMC
Are divergence trades dead and will this permanently depress the value of the USD? Asynchronous EM and Developed country business cycles, and sharp output/unemployment gap differences within DM, still favor USD positive policy divergence medium-term. Even very gradual Fed tightening will take the USD into ‘G10 high yield’ status into 2017. 

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