As per the latest Reuters poll of more than 60 foreign exchange strategists, “The dollar’s weakness will continue for at least another three months.” The poll also mentions Treasury yields as the key catalyst to direct near-term currency market moves.
“After gaining nearly 4% in the first quarter, marking its best start in years, the dollar index (DXY) – measured against a basket of six major currencies – fell more than 2% in April, its weakest performance in four months,” said the piece.
It was additionally dictated that the Australian dollar and the Norwegian crown were forecast to rise more than 2% and 3%, respectively, in a year. The Canadian dollar, which had gained nearly 4% for the year, was expected to weaken about 1%. It should, however, be noted that the poll expects Euro to remain around 1.20 during the upcoming three months before jumping to 1.22 in a year.
