US | US Dollar to regain some luster in 2021
While many commentators have been calling for a US dollar collapse, we believe the greenback will have a lot of staying power in 2021. In the wake of
extra-ordinary fiscal stimulus, favorable growth and interest rate differentials
should support a 3% year-over-year dollar appreciation by December 2021.
What you will learn about:
- After a predictable appreciation on safe haven flows and US dollar liquidity shortages in the early phase of the Covid crisis, the dollar fell back appreciably against emerging markets and advanced economies’ currencies.
- This unwind reflected less favorable growth and monetary policy differentials, along with reduced political uncertainty after the presidential election and a risk-on trade.
- We believe the third Covid phase will be one of nuance for the US dollar.
Tags:
Related Services
Post
South Africa: Elections 2024 | ‘ANC & EFF’ election scenario
This briefing sets out the second of our four scenarios for South Africa's general election: the ANC wins only 40% of the vote and makes a coalition deal with the radical leftists of the EFF.
Find Out MorePost
Relative return index signals improving CRE attractiveness
Our latest global relative return index (RRI) signals that risk-adjusted investment opportunities in commercial real estate (CRE) should start to emerge this year before becoming more widespread in 2025. At this point, our baseline expected returns move higher than required returns, pushing the global all-property index above the 50 mark.
Find Out More