Despite the fact that many currency strategists predict a decline in the value of the American currency next year, some of them do not recommend opening short positions in the dollar now.
According to them, the signals of the Federal Reserve System (FRS) of the United States, which is not going to turn away from the tightening of monetary policy, contribute to the strengthening of the US currency.
Today, the dollar index is trading near the maximum level for the first time since May 2017.
"As the Fed intends to adhere to the policy of raising interest rates, you can count on the dollar rate to rise at least until the end of the first quarter of next year," analysts at the Credit Agricole Group believe.
"The US economy is in good shape, the situation on the country's labor market continues to improve. It is unlikely that in the near future, the Fed will signal that it is close to the limit of increase in rates," said Societe Generale experts. However, they recognized that the dollar is overvalued. At some point in 2019, a correction may follow, but it is too early to sell the US currency.
"We expect that next year, the pace of growth in US GDP will slow down, which will put downward pressure on the dollar. However, in the near future, the American has every chance to grow stronger against the background of a weakening of the single European currency due to problems associated with Brexit and the Italian budget deficit," said experts at Bank of America.
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