Reuters poll: Dollar is running out of reasons to rally
Reuters latest currency poll shows that currency strategists are believing that the dollar's dominance is coming to an end
- 39/62 analysts sees the dollar rally as coming to a stall
- EUR/USD forecast at 1.20 in a year's time
- GBP/USD forecast at 1.38 in a year's time
- USD/JPY forecast at ~108 to end 2019
I reckon the sentiment here is mostly due to the dovish stance by the Fed with risks of the economy slowing down further as the US-China trade dispute potentially goes unresolved. That could even open the door for potential rate cuts down the road by the Fed but we'll get there when we get there.
As it stands, markets are looking to be increasingly bearish against the dollar to start the year. Considering the upside seen in the greenback last year, it could set up for a lengthy period of sluggishness for the dollar in the first quarter at the very least.