Stolper goes contrary, sees dollar weakness in 2014

|By:, SA News Editor

"Tapering is in the price already; we find it difficult to see where the dollar strength would come from," says Goldman's Tom Stolper, leaning against the crowd by taking a bearish view on the greenback (UUP +0.1%) for 2014.

He sees the dollar falling to $1.40 against the euro (FXE -0.2%) - no big deal given it's at $1.3724 at the moment - but it's a large deviation from the Bloomberg contributor consensus of a strengthening all the way to $1.28. Of 46 surveyed by Bloomberg, 42 expect the greenback to gain vs. the euro next year.

"We expect all major central banks on hold until at least 2015 - hence no immediate catalyst" for the dollar to strengthen further, says Stolper.

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