The dollar: the outcome of the year and what to expect in the coming

The dollar ends the year on a minor note. In general, it is still considered the best currency for the outgoing 2018, but the last weeks, as they say, spoil the statistics. The American fell against most major currencies under pressure from a number of negative factors, including heightened concerns about a partial closure of the US government and tensions between the White House and the Fed.

In addition, the currency is under pressure from a drop in the yield of 10-year US government bonds in December by about 25 basis points, which means that the prospects for the dollar are becoming even bleaker. There is every reason to believe that the dollar will continue to decline, but the yen, on the contrary, will become the main contender for replacement in these turbulent times. The dollar has already lost to her for eight consecutive sessions, the growing risks in the financial markets have benefited the Japanese currency and have a negative effect on the dynamics of the dollar.

In recent months, the dollar has struggled hard to get rid of the growing list of bear factors, including speculation about future US interest rates, declining bond yields, and falling oil prices. Despite this, the Fed raised rates for the fourth time this year and generally intends to adhere to its plans to raise rates next year, despite heightened economic risks. As a result, US President Donald Trump has intensified criticism of Fed Chairman Jerome Powell, and this public conflict has caused investor discontent. The partial closure of the US government also heightened their fears about growth prospects

If the dollar recorded the New Year's appeal, it would not have to say that "the outgoing year was difficult for us," it had no special reason to complain about the 2018th, but it was worth worrying that the coming year would.

The material has been provided by InstaForex Company - www.instaforex.com