Economy & Currency Outlook 2017 to 2018 by FXPrimus.
This article is originally referred from FXPrimus Special Report.
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.
Original Source: FXPrimus Special Report