28
Feb
Probable trend reversal for the dollar in 2018
Dollar increasingly likely to bounce back. Waning influence of European fundamentals on the euro. Brexit to weigh on the pound again. Beware of the overly strong yen. Further adjustment of the franc.
Key Points
- The dollar is likely to strengthen after three years of consolidation and a 50% correction following the 2011-2016 bull market
- Speculative positions remain very limited
- Waning influence of European fundamentals on the euro
- The yen’s strength is temporary and will likely be followed by consolidation
- The pound has weakened once again as Brexit looms larger
- The Australian dollar likely to rise further
- Positive surprises with regard to the Norwegian and Swedish crowns
- Favourable scenario for emerging currencies and those linked to commodities
