USD to Stay Strong Despite the US Fiscal Cliff and the Fed's Open-Ended QE Programme

USD to Stay Strong Despite the US Fiscal Cliff and the Fed's Open-Ended QE Programme PR Newswire LONDON, November 7, 2012 LONDON, November 7, 2012 /PRNewswire/ -- Obama winning a second term may mean a short term pop in risk appetite, but could mean the risk of a worse fiscal cliff and few policy developments going forward due to political gridlock The US fiscal cliff is a real threat to the US economy, but certainly not to the US Dollar - quite the opposite Latest e-book from Saxo Capital Markets launched, arguing the Fed's QE will not kill the US Dollar The US Dollar will remain a strong currency in the medium term despite the looming US fiscal cliff and the harmful effects of the Federal Reserve's open-ended and theoretically unlimited quantitative easing (QE) programme, says Saxo Capital Markets UK. John J. Hardy, Head of FX Strategy at Saxo, comments: "Obama's re-election means political and Federal Reserve business as usual in the US - but also means plenty of uncertainty surrounding the fiscal cliff. In "The Dollar & the Fed: QE won't break the buck", the first e-book in Saxo Capital Markets' FX Debates Series, Saxo envisages that the USA and its currency are in a far superior position than the other major countries thanks to stronger fundamentals. As a consequence, the Dollar is likely to stay stable or appreciate over the next 12 months.