According to the latest poll of currency strategists, the US dollar is likely to inch lower across its main competitors this year, in the wake of the “patience” stance adopted by the Fed last week.
Key Findings:
“The poll of 70 currency strategists taken Jan 31-Feb 6 showed the U.S. dollar is forecast to give up most of 2018’s gains against major currencies over the coming year.
Nearly 80 percent of strategists who answered an additional question said the dollar rally has already stalled, up sharply from over 60 percent one month ago.
The remaining respondents who expect the dollar’s ascent to continue said better U.S. economic performance versus its peers and a reassessment on rates by the Fed will drive the greenback further.
The single currency was forecast to trade around $1.20 in a year from about $1.14 on Wednesday.
Sterling’s path will largely be dependent on how Britain’s departure from the European Union pans out.”
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