Forex Flash: Sell everything, buy the USD - RBS

This is shaping up as a key week for the USD, says Greg Gibbs, FX Trading Strategist at RBS; "It may end up being a watershed moment when the USD rallies against all currencies and snaps the back of the bearish sentiment that has pervaded it since 2009, and much longer if you take out the crisis induced rallies" Greg notes.

Different factors are aligning in favour of the USD, Greg says: "It’s happening now. It is happening before Bernanke ends QE, because Bernanke has established his credibility, because the US is closer to the exit game even if it may be another year away. It is happening long before there is any rate rise in the US. The dollar will rally now because if China or Europe falters we will need its safe-haven status. It will rally now because Japan and the UK are two steps behind and expanding their QE. The USD will rally now to break the back of the bearish sentiment that has been over a decade in the making and has become too consensus."