Experts expect to strengthen the position of the main competitors of the dollar


Deutsche Bank experts believe that the euro, the yen, the Australian dollar, and the Swiss franc in 2019 should strengthen against the US currency.

They recommend buying the euro against the dollar, predicting the inversion of the yield curve of US government bonds, which will serve as a negative factor for the greenback.

"Thanks to the policy pursued by the ECB, as well as against the background of the surplus of the current account of the eurozone, the single European currency looks quite stable," representatives of the financial institute said.

"We recommend taking a short position in the USD / JPY pair, which can test the level of 100 by the end of the year. It is assumed that the Japanese Central Bank will not impede the growth of the yen. We also recommend buying the Australian dollar against a US competitor or considering buying an AUD against a basket of currencies of developing countries as an alternative," they added.

A similar point of view is held by currency strategists Morgan Stanley.

"Mitigation of the Fed's rhetoric and the possible achievement of progress in the US and Celestial trade negotiations contribute to the growth of optimism in the market. We advise you to take advantage of this and buy the Australian dollar. In addition, the restoration of risk appetite in combination with the increase in oil prices should ensure the development of the impulse that has begun at the beginning of the year to reduce the pair USD / CAD. Therefore, we recommend not linger with its sale," they noted.

The material has been provided by InstaForex Company -