US Dollar Likely to Continue Trading Strong: Reuters Poll
A recent Reuters poll reveals that the US dollar could continue to trade strong against other leading currencies as a preferred safe haven instrument amid rising uncertainty about the economic impact of the coronavirus pandemic. Meanwhile, other currencies could at best recover losses for the remainder of the year after the situation stabilizes.
45% of economists polled expect the greenback to continue trading around current levels and remain range-bound over the next three months. Around one year from now, however, the dollar could weaken against its major peers.
The US dollar has been in focus over the escalating likelihood of the global economy slipping into recession as a result of the pandemic. In times of heightened economic uncertainty, the dollar is considered one of the most liquid and safe instruments to invest in.
So far this year, the dollar index has gained around 3.5% against other major currencies. Q1 2020 was the best quarterly performance for the DXY since 2015. Despite recent monetary easing measures of the Fed, the US dollar is expected to experience more gains than other currencies owing to concerns about pick-up in global trade.
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