Most of the analysts surveyed by Reuters expect the dollar's strength to dissipate.
- poll of around 80
- taken September 28 to October 5
There is a wide range of forecasts in the one-month-ahead, some saying it'll go up 2%, others down by the same amount!
Some of the comments reported:
- "The outlook for the next month or so is messy to be honest, because of the U.S. election... but the dollar will benefit from the ongoing political uncertainty in the next few weeks," said Kit Juckes, head of FX strategy, at Societe Generale.
- "The dollar is a safe-haven because of its intrinsic qualities and its liquidity - as there's so much debt around the world issued in dollars and because so many business invoices are drawn up in dollars on a day-to-day basis," said Jane Foley, head of FX strategy at Rabobank. "There have been investors wondering if their short dollar positions were sensible in the current environment. And you've just seen some short-covering of dollars certainly."