The US DOLLAR struggled to perform on the offensive for most of 2017 amid growing political, geo-political and environmental related risks, moving nearly 6.20% lower year-to-date (YTD).

Trading was characterised by a broad bearishness surrounded by Trump’s policy which prompted investors to shift to better opportunities until uncertainty subsided.

Opportunities for short-term investors though were indeed decent; they switched the US 10-15Yr Bond Yields and the US Dollar Index to a reverse course up until early September and October respectively mainly due to delays around fiscal policy.

After a period of not so good nine months, expectations for rate hikes and considerable fiscal stimulus strengthened the US economy.

Real GDP grew at 3.3%, a 3-Year high, Core Inflation remained moderate at around 1.7%, and Unemployment remained at 2001 lows.

Keeping in mind a risk appetite that reflects Fed’s hiking cycle and a substantial policy boost, along with Powell’s Yellen-like accommodative stance of gradual normalization, I believe 2018 will push the Dollar Index lower to 88.00 – 85.00 levels.