Currency Traders Shouldn't Dismiss the Dollar's Chances Just Yet
- Consensus sees further losses, yet upside risks may emerge
- Market pricing may reflect undue bearishness on FOMC, Trump
Photographer: Scott Eells/Bloomberg
This article is for subscribers only.
Analysts and traders looking for the dollar to remain under pressure throughout the year could be in for a surprise.
With the greenback extending last year’s drop into 2018 on the back of surging growth overseas and expectations of central bank tightening in Europe and Japan, markets are positioned for more weakness and forecasters see the Dollar Index heading lower. However, investors may be overestimating the headwinds and underestimating the tailwinds for the U.S. currency.