USD Starts 2018 on Wrong Foot

The U.S. dollar started 2018 on the wrong foot, hitting its lowest point since mid-September.
In fact, the greenback lost value for almost all of 2017. It plummeted despite factors that typically drive up the dollar, like the passage of tax cuts and an overall healthy U.S. economy.
But compared to the world’s most traded currencies, the dollar fell nearly 10% last year. It’s down 2% since December 15, according to the ICE dollar index.

Political turmoil stemming from the 2016 election, better global growth and uncertainty over whether the tax bill would even happen pushed the dollar south to start last year.
But more recently, experts say dimmed expectations for the tax bill’s impact on the U.S. economy, along with international factors, have caused the dollar to continue drifting down.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza