What's Next For The US Dollar As We Go Into 2017?

Published 12/11/2016, 12:52 AM
Updated 07/09/2023, 06:32 AM


With the market fully pricing in a Fed rate hike late next week (December 15th, 2016), we shall look towards the next year's policy outlook to gauge US strength.

The federal reserve said it as not bothered about Donald Trump's fiscal policy changes and would only put them into consideration once they are in place.

Essentially this would mean that they are most likely to maintain a wait-and-see stance to monetary policy action; which does not excite speculators.

If surprisingly Yellen hints at further tightening in 2017, we shall load in more bullish USD positions mostly against low yielding currencies (JPY and euro.)

In the short term, (from now until year-end) I would like to see the US dollar correcting lower as traders take profit from the post-election rally.

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