More Wall Street experts say bearish expectations for the US dollar. According to many of them, the bullish trend for the US currency, which began after the financial crisis, will continue to decline next year, according to Bloomberg.
Global economic growth and the increasingly hawkish sentiment of global central banks will contribute to the weakening dollar. Thus, the next year for the US currency may become worse in more than 10 years, despite the strengthening of economic growth in the United States, as well as the willingness of the Federal Reserve System (FRS) to continue raising the rate. "
Beware of dormant volcanoes and seriously undervalued currencies, says analyst Keith Jux. “Given that global economic growth is becoming more balanced and synchronous, the dollar looks expensive.”
“We think that 2017 will be a turning point for the dollar,” said Ned Rampeltin, currency analyst at TD Securities Inc. “As long as the global economy is growing at a steady pace while maintaining factors contributing to inflation, while inflation in the US does not show sustainable growth global macroeconomic landscape will weaken the US currency"
A weaker-than-expected strengthening of the dollar in response to progress made in the discussion of US tax reform, which is considered a factor in stimulating inflation, is an example of how experts assess the prospects for the US currency.
Declining dollar traders believe that tax reform is unlikely to provoke immediate repatriation of foreign profits by companies, while increased global growth is pushing up foreign bond yields and the eurozone economy is gaining momentum.
The repatriation of profits from US companies will simply be a change in reporting, and not the withdrawal of dollar liquidity from abroad, "said Deutsche Bank forex market analyst Georg Saraw.