US dollar in for a tough year

12 January, 2018

The US dollar finished off 2017 mostly weaker against the major currencies despite 3 rate hikes from the US Federal Reserve and although 3 more rate rises are expected this year, some predict the greenback will be in for another disappointing 12 months.

On top of rate hikes, US tax reform, which includes slashing the corporate tax rate to 20 percent was passed by the US congress in December, and was predicted to lend support to the US dollar as companies repatriated their funds back to the mainland for tax savings.

Although there was much hype surrounding the benefits of tax reform there are many unknowns and some see problems down the track as the tax legislation takes hold.

"We still think the dollar is probably going to be relatively soggy, at least against the majors, probably against the emerging economies to a significant degree as well," Jan Hatzius, chief economist at Goldman Sachs, said.

Rumors out of Canada today claim that US President Donald Trump is planning to pull out of NAFTA - the (North American free trade agreement) which some predict will be disastrous for the US dollar.

Inflation will slow which is exactly what the Fed doesn’t want as it may interfere or even force them to cancel their planned rate hikes as prices for many goods rise as the US is forced to look elsewhere to import goods.

"The dollar will suffer against the euro but the market is not really having a clear view on this. The euro is actually down on these headlines. The market is actually so confused about what it means for the global dollar," said Jens Nordvig, CEO of Exante Data.


Source link  
Is Yen finished as a safe haven currency?

Along with the Swiss Franc, the Japanese Yen has historically been the other currency that the market has deemed a safe haven in times of financial instability...

Trump may drive down the oil price

The oil price has risen around 13 percent over the last 10 days which has pushed up gasoline prices in the US to uncomfortable levels and with elections...

Trade wars and risky currencies

Traders might be wise to avoid the riskier currencies and park their money into stronger one's such as the US dollar or Japanese Yen as the US gets ready...


Fed will dictate the gold price

After bouncing off a more than 6 month low in yesterday's trading session gold has continued to drift higher today, and some say for the precious metal to make...

Is gold loosing its safe haven status?

Gold maybe losing its status as a safe haven asset according to some analysts after failing to capitalize on recent events happening around the world...

Trump's moves may pressure oil

After hitting a 3 year high a little less than 2 weeks ago, the oil price has tumbled nearly 10 percent and things may be set to get worse as Saudi Arabia...


Gold receives a double boost

The gold price has received a significant boost over the past few trading sessions on the back of economic and Geo political developments which may...

Can gold finally breakout?

The gold price received a much-needed boost yesterday after disappointing data from the US hit the market which cast doubts over the state of the US economy...

Is gold stuck in a bear market?

The US dollar has been on a stellar run over the last few weeks against most of the major currencies and commodities such as gold, which is why...


In the past 24 hours Bitcoin has lost -1.4% and reached $7366.49. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.3727% and is now at $1.1646. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 5.88% and is now at $461.052. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: