...USD Strengthening a Challenge: Net exports between the U.S. and eurozone would be further affected by a continued strong and sustained move in the dollar against the euro, potentially negatively affecting growth in the U.S. Should rate hikes continue in 2016, a further widening of the monetary policy divergence between the U.S. and the eurozone may lead to more dollar appreciation and U.S. export weakness. Capital Goods, Transportation and Natural Resources: These are among the sectors that could be most affected by a strengthening of the USD. Fitch Ratings identified several industrial sectors that could either benefit or suffer from further dollar appreciation based on the relationship between currency, GDP and exports. Oxford Analytica (OA) estimated the elasticity between these, with Fitch examining the impact at the corporate sectoral level. Eurozone Benefitting: The significant strengthening of the dollar in 2014¡2015 contributed to better economic performance in the eurozone, primarily...
