Will soft GDP drag down the dollar?

By Jim Vrondas

The Bank of England still looks like it may be the first to increase rates, and although not likely this week the votes are likely to remain split as they were last time around (when two members voted for a rate rise).

It is likely the Reserve Bank will want to wait and see how the data pans out over the next month so I am not expecting any real change to the accompanying media statement.

If the ECB was to go down that path then it's likely that over the course of the next year or two the euro will trade below 1. 2 against the greenback — not quite as bearish as Goldman's call for euro/US dollar parity in 2017 but bearish nevertheless.

Read more here: Business Spectator


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