• The Trade Weighted US Dollar Index has been growing since Q4 2011. Its growth increasing over the last nine months.
• The annual rise in CPI is below 2%, and the US economy remains relatively weak.
• The US Market is attracting foreign capital that is fleeing their local currency devaluation.
• There is no reason for the Fed to increase interest rates under these conditions.
• Interest rates will probably rise only once the dollar reverses its gains.

In October 2014 the FED announced that QE has ended and that it is keeping record low interest rates for “a considerable time”. The question arises “When will the FED increase interest rates?” Some analysts are speculating for rate hikes in April or May this year. We believe that history may provide better guidance.