USD’s mature-looking secular bull trend to moderate in late 2017 - Scotiabank

Analysts at Scotiabank explained that they remain constructive on the U.S. dollar (USD) outlook moving into the end of the year and into 2017.

Key Quotes:

"We expect a 25bps Fed tightening in December to support the USD and a further increase in U.S. rates to underpin broad gains well into 2017. We anticipate another three ¼ point hikes in 2017 whereas the short end of the yield curve has barely priced in one 25bps tightening over the coming 12 months."

"In the longer-term, we expect the USD’s mature-looking secular bull trend to moderate in late 2017 as the Fed policy rate nears neutral and other central banks tilt away from accommodative policy settings."