Around 60% of analysts in the Reuters poll (conducted January 6 to 9) who answered an additional question on dollar strength (32 of 57) said the USD will continue to dominate the market either from six to 12 months or for more than a year.
On the euro:
- analysts still expect it to gain about 2% to trade around $1.13 in six months
- and to end the year at $1.15.
- but … "If the U.S. has to cut rates because it's under severe downward pressure in terms of growth and global growth is weak then it is harder to argue that the euro is going to see any material rebound," said Tim Riddell, macro strategist at Westpac.
- to strengthen around 3% by end-2020
- was expected to rise by a touch less than 1% against the dollar in a year