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More Trouble Ahead for the Dollar

Published 2018-01-15, 11:08 a/m
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Investing.com - Any sign of weakness in the U.S. economy and chances are the dollar will lose value.

That was the case with the most recent inflation data. Get used to it, say analysts.

The dollar is headed for another down year, especially against the euro, which rose 12% against the U.S. currency in 2017.

Whether it's worries about low in the U.S. or optimism about the strengthening Euro Zone economy, there seems to be no shortage of reasons to bet against the dollar in 2018.Analysts don't expect further U.S. interest rate hikes to support the dollar.

Instead, they say signs the European Central Bank is pulling back on its easy money policy will help extend the euro's rise against the dollar,Citibank, for instance, expects the dollar to fall another 5% overall. Deutsche Bank (DE:DBKGn) is among the most bullish on the euro, forecasting a euro/dollar rate as high as 1.30.

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