Wells Fargo: dollar to maintain long-term strength

The ‘risk on’ sentiment, which took hold on the outcome of the first round of the French elections, will not scupper the dollar

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Flight path: US fiscal and monetary policies will continue to drive dollar strength, says Wells Fargo

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Gains in the euro following the outcome of the first round of the French presidential election will only persist in the short term, while US fiscal and monetary policies are set to return to focus and eventually bolster the dollar, says Erik Nelson, a currency strategist at Wells Fargo, which topped FX Week’s 12-month forecast table last week.

The qualification of Emmanuel Macron and Marine Le Pen to the second round of the French election on April 23 had a posit