A majority of currency strategists surveyed by Reuters expect the US Dollar to continue dominating currency markets at least for the rest of the year.
While the Federal Reserve is seen cutting rates over the coming months, the yield on the US Dollar would still remain attractive compared to its G-10 counterparts. As a result, dollar will continue to benefit from carry trades, according to analysts.
Further, it is widely believed that global trade tensions will not be helpful to European growth and will likely force the Eurropean Central Bank to cut rates. The ECB President Draghi put rate cuts back on the table last month.
The Dollar, however, is not expected to maintain the bullish momentum over the long run and the analysts are still clinging on to their view of a weaker greenback in a year.
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