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Ditching the U.S. Dollar Emerges as a Popular Call for 2019

  • Strategists say Fed pause, slowing U.S. economy to hurt dollar
  • Buying yen another favorite call on monetary policy outlook
Bloomberg business news
Brexit Offers Dollar Safe Haven Buying Support, Seifried Says

Strategists in the $5.1 trillion-a-day currency market are gearing up for a slumping dollar next year, while pinning their hopes for 2019 gains on the yen.

A major driver of the dollar’s decline could be a downturn in the U.S. economy, especially in the second half of the year, JPMorgan Asset Management predicted. Others expect the Federal Reserve to slow down interest-rate increases, which they see as bearish for the greenback. Rising market volatility and capital demand abroad will also spur an outflow of funds from the U.S., according to Morgan Stanley strategists.