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Dollar Looks Poised to Weather Fed Cuts and Recession Risk

  • Columbia Threadneedle sees greenback headed toward euro parity
  • ‘There’s nothing we see that’s going to deter the dollar:’ BMO
Bloomberg business news
Trading the Fed's October Rate Decision
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Investors are bracing for the dollar to keep appreciating through at least early 2020 even though the Federal Reserve looks poised to cut rates and the risk of a U.S. recession remains elevated.

The dollar has already surprised investors by holding steady even after Fed reductions in July and September. Now, with the world’s growth outlook decidedly downbeat, Columbia Threadneedle Investments is positioning for the greenback to strengthen against the euro by more than many forecasters are predicting over the next three to six months.