# Dollar to lag euro and pound in long run – Danske

## Danish bank sees EUR/USD trading at $1.16 in three months' time and at$1.25 in 12 months

While the dollar is expected to lose ground against the euro and sterling in the long run, the greenback could extend its gains against the single currency before the end of 2017, says Thomas Harr, global head of fixed-income, currencies and commodities research at Danske Bank.

“In the short term we are looking for a bit of dollar strength because [of] the US dollar liquidity squeeze we are seeing at the moment, coupled with a [potential] Federal Reserve rate hik