Mitsubishi UFJ: The US dollar may be on track for its worst annual performance since 2017.
TL;DR
Mitsubishi UFJ analyst Lee Hardman predicts the US dollar will have its worst annual performance since 2017, with a 9.3% drop this year and further weakness expected next year due to Fed rate cuts and narrowing bond spreads.
Tags
[Mitsubishi UFJ: Dollar Poised for Worst Annual Performance Since 2017] According to Mars Finance, Mitsubishi UFJ analyst Lee Hardman stated in a report that the US dollar is expected to experience its worst annual performance since 2017 and face further weakness next year. He predicts the dollar index will fall 9.3% this year. Both this year's and 2017 declines coincided with the early stages of President Trump's term. Hardman pointed out that the dollar recovered some ground in 2018, rising 4.4%, but a similar recovery is unlikely in the coming year. He believes that "as the Federal Reserve further cuts interest rates, and other G10 central banks have ended their easing cycles, the spread between US Treasury bonds and other major economies' bonds will continue to narrow." (Jinshi)