According to a Reuters poll of strategists, the US dollar is expected to drop across its main competitors over the coming year, in the wake of a slowing US economy, a widening fiscal deficit and a dovish Federal Reserve.
Key Findings:
“The currency is forecast to give back some gains over the coming year.
The dollar is expected to weaken, with the euro forecast at $1.19 in a year, over a 5 percent rise from $1.13 on Wednesday, according to the poll of over 70 currency strategists taken Feb 28-March 6.
But that outlook for 12 months ahead was a downgrade for the single currency against the dollar compared with last month.
On US-China trade deal:
Any resolution to an ongoing trade dispute between the United States and China is also unlikely to change the fortunes of the dollar.
If the two countries do achieve a trade deal within the next month or so, the dollar is expected to make no significant move, while in a no-deal scenario, the greenback was forecast to rise by 1 percent.”
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