Dollar lower or steady at best over the coming year - Reuters poll

The latest Reuters poll of over 60 strategists conducted this week showed the US dollar will remain steady in the coming three, six, and 12 months as predictions were largely unchanged, suggesting the current rally will mostly be short-lived.

The reason behind the expectations of a stalled rally in the US dollar in the coming months is largely because the strategists were not entirely convinced of the Trump administration’s ability to pass through tax cuts.

Key Findings:

A touch more than half of 38 respondents who answered an extra question said the net short bets for the buck will decrease by the end of the month, while 10 said they will remain the same.

While only two strategists said bets against the dollar will increase, just six of them said there will be a reversal in positioning in favor of the greenback.

The Euro is now forecast to stay around the $1.18 it was last trading on Thursday in a month, and over the next 3-6 months. It is then expected to add about 2 percent to $1.20 in a year.

If those predictions for end 2017 are realized, it will mark the first year of gains for the euro since 2013.

The yen is expected to trade around the current 112 per dollar in a month and weaken only slightly to 114 in a year.