Posted by Ray Uy, Head of Macro Research and Currency Portfolio Management on March 8, 2019, in Fixed Income
US dollar: Underweight
We continue to expect the US dollar to weaken against a backdrop of renewed global growth convergence. This will likely be driven by the unwind of the US exceptionalism theme of 2018 and the pivot toward a more dovish Federal Reserve policy going forward. Additionally, US budget and current account deficit concerns will likely persist and could be negative for US dollar performance.
Euro: Overweight
We are optimistic on the prospects for euro