In August 2020, the US Reserve agreed to increase employment, confirming a tolerance for higher inflation. Analysts believe interest rates will remain low for some years. This could potentially weaken the US dollar further. Fiscal restraint, low consumer confidence and the equity bull market means the USD is likely to remain vulnerable.

Some believe only a fiscal stimulus or correction in global equities could trigger the return of the USD as a safe-haven currency.

 

Currency outlook 2020

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