Komaki Group researchers have told clients that they should be positioning themselves and their portfolios for an abrupt end to the temporary reign of ‘King Dollar’ in 2015.

One Komaki Group analyst remarked, “Despite concerted and somewhat coordinated efforts to talk up the state of the US economy, evidence is mounting that, once again, the 6 year old recovery is losing momentum.”

The current slowdown has come at a time when the Federal Reserve has been carefully preparing markets for a normalization of interest rates. Consensus has been that the central bank would begin raising rates by the third quarter of 2015 but the latest economic data appears to be pointing to, amongst other things, a cooling in consumer spending, weaker durable goods orders and a slew of worse-than-expected 4th quarter earnings reports from some of the biggest US corporations.

“It’s inconceivable that the Fed could hike rates when it needs to be as accommodative as possible. The US economy has been struggling to recover sustainably since it emerged from recession in 2009,” added the Komaki Group analyst.

The firm has advised clients that while the US dollar could track higher in the following months, there is much evidence to suggest that a suitably accommodative tone from the Fed intended to soothe market jitters could send it sharply lower.” A strong dollar doesn’t help the country’s exports and makes them more expensive than those from rivals in Europe and China concluded the Komaki Group analyst.