FX.co ★ US dollar to head lower next year

New Year is a period when all wishes can be fulfilled. Thus, traders are looking forward to a new US dollar forecast. The world’s largest and the most respectable financial organizations, including Deutsche Bank, Goldman Sachs, Bank of New York Mellon, Citigroup, and investment management company BlackRock, have agreed on one key point. They suppose that the US dollar is heading for a modest fall. According to the forecast, by the end of 2020, the greenback can trade at 1.16 against the euro compared to the current rate of 1.10. There are several reasons for such an announcement. First of all, the US Fed is likely to hold its key interest rate unchanged or even cut it. Besides, economists expect that the global growth concerns will ease, thus boosting demand for riskier assets. Moreover, currencies with relatively high rates such as the Canadian and New Zealand dollars as well as the British pound will continue to attract interest. At the moment, the US dollar is towering above other currencies. That is why its depreciation is quite predictable especially amid easing concerns about the global economy.