The EUR rallied from $1.03 to $1.25 versus USD in 2017 and has spent the first half of 2018 consolidating those gains. The EUR declined from $1.25 in March to a low of $1.15 in June but that correction looks over now and the USD downtrend should resume shortly. The reason for the USD rally in 2018 is likely in response to the recent round of interest rate increases by the Federal Reserve. The Fed hiked rates again in June and the market is pricing in two additional interest rate increases in the US by the end of 2018. If long-term yields remain unchanged, the yield curve will invert as a result of the Fed's actions. The spread between 2 and 10 year Treasury yields is just 29 basis points today.
With the market already pricing in short-term rates close to 3.00% this year, the interest rate rising cycle is close to ending and the direction of the USD should shortly reflect this outcome.
At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader investment strategies, please get in touch at firstname.lastname@example.org or 086 821 5911. If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.
The information contained herein should not be taken as an offer of investment advice or encourage the purchase or sale of of any particular security or investment. It is provided for information purposes only. Secure Investments and its content providers makes no representation or warranty of any kind with respect to the services described, analysis or information obtained arising from use of the pages on this website. Information provided is obtained from sources deemed to be reliable and is provided solely on a best efforts basis. Secure Investments and its content providers do not guarantee the completeness or accuracy of such information and do not accept any liability for any loss or damage arising out of negligence or otherwise as a result of use or reliance on this information, whether authorised or not. The use of the website is at the user's sole risk. Not all recommendations are necessarily suitable for all investors and investment policy must be tailored to suit the circumstances of the individual. We recommend that readers consult their professional adviser before acting on any advice or recommendation on this website. The value of any investment may fall as well as rise and you may not recover the full amount originally invested. Past performance or simulated performance is no guarantee of future investment returns. The value of your investment may be subject to exchange rate fluctuations which may have a positive or adverse effect on the price or income or the securities.