Saxo Bank's Mads Koefoed says the US fiscal drag will remain sizeable in the second half of this year and will keep growth lower than developments in the private sector suggest.

Solid USD gains at the start of 2013 were replaced in Q2 and early Q3 with wild indecision. Now, the currency should send a clearer signal of its intent to rally as the Fed asset purchase taper begins, though US and global growth worries remain.