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Dollar bulls have a lot to worry about in second half of 2017

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Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi

The poor performance of the U.S. dollar during the first half of 2017 is not all that surprising given how varied forecasts were at the end of last year. End-of-2017 target levels for the euro-dollar pair, for example, ranged from just below parity at 97 cents to as high as $1.15 by the end of the 2017, according to The Wall Street Journal. Many of the bullish calls for the dollar were driven by a rapid rise of the greenback following the U.S. presidential election, which brought Donald Trump to the White House. The thinking went that Trump administration along with the Republican-controlled Congress will be able to inject a massive stimulus into the economy via tax cuts and infrastructure spending, accelerating the pace of rate increases.

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