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Dollar Super Cycle Is Over as Europe Comes Back, Barclays Says

  • Currency is down this year after rallying 28% in four years
  • Europe recovery, aging U.S. business cycle at fault: Barclays
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BNP Paribas' Sneyd Says EUR/USD Is Overstretched

The dollar’s multiyear rally is dying of old age in the face of recovering growth in Europe, according to analysts at Barclays Plc.

“The cyclical divergence that helped the dollar in these years has likely peaked,” head of macro research Ajay Rajadhyaksha and emerging market strategist Michael Gavin wrote in a report to clients. “Not only because of the European recovery, but also because the U.S. business cycle is more advanced than in Europe.”