G10 forecaster of 2018: CIBC sees weaker dollar in 2019

As the US economy slows and Fed tightening ends, the dollar will lose some ground, the bank says

Jeremy Stretch
Jeremy Stretch: CIBC is structurally bearish on the dollar and has long anticipated a deceleration in Fed tightening

The dollar will weaken in 2019, as the effects of the stimulus provided to the US economy by fiscal expansion begins to wane and the Federal Reserve ends its interest rate hiking cycle, says Jeremy Stretch, head of G10 FX strategy at CIBC.

“A slowing in economic activity, in part due to the waning sugar rush of the fiscal expansion, underlines the prospect of an easing in dollar valuations,” says Stretch. “A decelerating economy comes against the realisation that the fiscal expansion has

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