The U.S. dollar was pushed to a 15-month low (on a trade weighted basis) through the combination of a consistently neutral policy stance from the Federal Reserve, record low market interest rates, a broad rise in risk appetite, and emboldened calls for diversifying reserves away from the world’s most liquid currency. Some of these factors will prove temporary; but others are lasting concerns for the greenback. Knowing which dynamic holds which time frame and knowing which holds more bearing for the future will help trace out a fundamental road map for the dollar through what promises to be an active six months.

Credit:
Forecast for the U.S. Dollar