Posted on 12/01/2016 7:02:39 AM PST by GonzoII
(Reuters) - The U.S. dollar rally is likely to continue into the coming year on expectations that President-elect Donald Trump's proposed reflationary economic policies will force the Federal Reserve to raise interest rates more quickly, according to a Reuters poll.
Most foreign exchange strategists also say risks to forecasts for the dollar to gain against every major currency are skewed to the upside. They see nearly one chance in three the euro will reach or fall below parity in the year ahead.
"(The dollar) continues to reign supreme on the back of bets of improving growth and the inflation outlook in the U.S. after Trump's win," said Valentin Marinov, head of G10 FX strategy at CA-CIB. "Investors continue to adjust their long-term rate hike expectations, anticipating a more aggressive monetary tightening cycle."
(Excerpt) Read more at investing.com ...
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