Economic Observation: The Dollar Has Never Been So Fierce As This Year.

2014 is about to close, and the US dollar or the biggest bull market in 9 years is expected to increase by 12% against a basket of currencies. As the market generally expects the fed to raise interest rates next year, the US dollar is expected to continue to strengthen next year.

The last time the dollar was so strong was in 2005, when the US dollar rose nearly 13%.

This momentum is beyond the expectation of most institutions at the end of 2013.

According to the statistics of the following figures, only the Bank of Ming and Sheng Bao predicted that the US dollar index could exceed 90 in the fourth quarter of this year.

This year's US dollar gains are mainly attributable to the start of the Fed's policy shift to raising interest rates, and the sharp contrast is that the policies of Japan and the European Central Bank are considering more monetary stimulus.

The US dollar index, which contains a basket of major currencies, has risen 6 months to 90 this year, the highest since April 2006.

The recent improvement in US data has also reinforced the extent that the US economy has recovered enough to raise the Fed's interest rate, which is widely expected to increase in the middle of 2015.

This week investors are facing political turmoil in Greece.

Worries have helped to support the yen demand, and the dollar has ended in the end of the year.

The US dollar is still up 13% against the Japanese yen this year.

USD / JPY opened a strong rally in the wake of the announcement of the Japanese central bank's announcement of an expanded monetary stimulus at the end of 10 to prevent inflation expectations from falling.

Bank of Tokyo-Mitsubishi UFJ (Bank of Tokyo-Mitsubishi UFJ) analyst

The overall trend of US dollar / yen in 2015 is likely to increase year by year.

Ino said: "in 2015, if I want to ask the US dollar / yen may fall to 100 or to 130, I prefer the latter, but the rally may be full of twists and turns."

Ino added that the fact that market positions have already prepared for the further devaluation of the yen may help to ease the rise in the US dollar / yen, and that if the political situation in Greece is aggravated, the yen is expected to get a short-term boost.

This Tuesday

It hit a 29 month low of 1.2123.

The euro / dollar has fallen by about 11.5% this year, the biggest annual decline since 2005.

The Greek ruling coalition failed to get enough votes in Congress to elect the president on Monday. It had to conduct an early general election in January, which brought Greece into a period of political turmoil.

The market is worried that the Greek leftist radical coalition party may win the election, which will make the country's international aid go hand in hand and rekindle the European debt crisis.

The euro has been suppressed by the prospect of further easing of the European Central Bank in 2015, and the political situation in Greece is uncertain, which makes the euro face greater downward pressure.