Tag Archives: Currency fluctuations

Although close to the end of a long-term up-cycle, the dollar has the potential to recover ground lost recently given the outlook for Fed rate rises and balance sheet reduction.Our latest forecasts for major currencies over the coming months can be summarised as follows:US dollar. In terms of duration and valuation, the USD up-cycle is likely close to ending. However, the USD is likely to remain strong on the back of robust US growth and the outlook for inflation. It should also benefit from...

Given a widening real yield differential, we see the dollar continue to rise, especially against the yen, while further sterling downside looks limited.Our latest forecasts for individual currencies in 2017 can be summarised as follows:US dollar. The USD is likely to remain strong on the back of an improving US growth and inflation outlook as well as continued monetary policy divergence. Our base case scenario is for a Trump administration that puts the emphasis on growth without too much by...