The latest Reuters poll of currency strategists showed that the US dollar is expected to reverse most of its 2018 gains amid Fed rate pause risks and dwindling US economic outlook.
“The Jan. 2-9 poll of 75 analysts showed the dollar is now forecast to give up most of its 2018 gains over the coming 12 months, hurt by a U.S. economy expected to lose steam as the year progresses. The dollar index gained over 4 percent last year.
While analysts predicting the dollar to underperform against major peers have previously been proved wrong, they are still forecasting it will reverse last year’s gains in 2019.
Thirty-nine of 62 analysts who answered an additional question said the dollar’s dominance, which started early last year, has stalled. Among those who said the currency’s run still has legs, over 85 percent said it would tire in six months at most.
Only three respondents said the dollar’s rally would continue for a year or more.”