US dollar forecast: Preview for the Forex events that will rock currencies ► focusing on major events and especially on publications in the USA, moving the US dollar (greenback). Here is some general information. Scroll down for the latest US dollar outlook
USD and forex general characteristics
The United States Dollar is the reserve currency of the world. The dollar is the currency of choice for oil prices as well as other commodities. Foreign exchange pairs are divided into majors, minors, and crosses. Both majors and minors include the USD.
US events influence currencies more than any other event. The decisions and statements of Federal Reserve officials and economic developments in the US make the biggest waves. The US economy is the biggest in the world. US politics and policy also have an outsized impact on currencies.
The outlook consists of mostly US economic events but also key market-moving figures from other major economies. The euro-zone, the UK, and Japan stand out.
Recent USD Moves
The greenback had a bad start to the year: poor growth and scandals hurt the US dollar. Hopes for fiscal stimulus faded with the repeated failures to repeal Obamacare. Despite two rate hikes in the first half, the dollar struggled. Other economies outperformed America.
The second half already looks a bit different: economic growth reached 3% annualized and the Fed seems to stick to its plan to hike rates three times. In addition, Trump’s tax plan inspires markets, despite the dearth of details. The summer hurricanes and doubts about the tax plan limit the dollar’s gains.