EUR/USD seen at 1.1900 in a year as USD expected to fall – Reuters poll

According to a Reuters poll of strategists, the US dollar is expected to drop across its main competitors over the coming year, in the wake of a slowing US economy, a widening fiscal deficit and a dovish Federal Reserve.

Key Findings:

“The currency is forecast to give back some gains over the coming year. 

The dollar is expected to weaken, with the euro forecast at $1.19 in a year, over a 5 percent rise from $1.13 on Wednesday, according to the poll of over 70 currency strategists taken Feb 28-March 6.

But that outlook for 12 months ahead was a downgrade for the single currency against the dollar compared with last month.

On US-China trade deal:

Any resolution to an ongoing trade dispute between the United States and China is also unlikely to change the fortunes of the dollar.

If the two countries do achieve a trade deal within the next month or so, the dollar is expected to make no significant move, while in a no-deal scenario, the greenback was forecast to rise by 1 percent.”