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19.11.2018 01:37 PM
Experts expect a slight increase and further decline in the US dollar in 2019

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According to analysts of the largest bank Citi, in the near future, the rate of the American currency will slightly increase in relation to other world currencies, and then it will face a significant decline.According to experts of the bank, after the recent elections to the US Congress, there was an increase in the value of the US dollar, despite the active bullish trend in the market. "The stock market first grew significantly, and then collapsed along with the yield of US Treasury bonds," emphasize Citi experts.According to forecasts of financial banking strategists, in the next three months, the US currency will rise in price against the currencies of the Big Ten countries (G10) by about 1%. After 6-12 months, the US dollar will fall in price against them by 2%, experts believe. Recall that the countries of the Big Ten earlier included Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom, and the United States. In 1964, Switzerland joined the G10, but the name of the organization remains the same. The Bank of International Settlements (BIS), the European Commission (EC), the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) participate in the G10 as observers.In the long run, the financial and economic support provided to the American economy may weaken, according to Citi. It will be replaced by a tough monetary policy that will slow down the growth rate of the US GDP, and this will negatively affect the retention of leading positions in relation to other countries.Bank experts focus on the so-called "triple deficit" of the United States, which still remains high and requires funding from foreign investors. Currently, absolute and relative rates in the United States are attractive to businessmen, but as the economy slows down, the situation will change. As a result, the rate of the American currency will be under pressure, experts believe. Analysts believe that geopolitical problems in Europe will have some support for the US dollar in the medium term. They mainly relate to the situation in Italy and the negotiations about Brexit.

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Larisa Kolesnikova,
Analytical expert of InstaForex
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