Policy divergence to remain a theme for two more years

Some currency pairs could go lower if the Fed's hopes for a rate increase materialise, says Wells Fargo analyst

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Lone stand: the Federal Reserve has been ready for some time to return to normal

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The contrast between the Federal Reserve's readiness to hike key rates and the easing bias of developed central banks will remain the most important driver of currency movements over the medium term, says Erik Nelson, a currency analyst at Wells Fargo, the winner of last week's currency forecast tables.

"What you have overall is just this broad bias towards policy easing in these countries. Monetary policy tends to be the most important driver for currency moves of the

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