We are in the first trading day of 2018, where we find the American dollar struggling against major currencies.
The USD was in a tough spot after a December rate hike failed to provide support for further growth, and even the adoption of tax reform did not help. During the holiday season demand for the American currency decreased, as many traders looked toward commodities whose prices have been increasing. We find the dollar index has slumped by almost 10% last year and is currently at 91.93.
Towards the end of 2017 the USD began losing positions against the euro - this is still the case. Earlier today the euro reached four-month highs above $1.20 and is steadily bullish. Last year was fantastic for the euro and many investors expect that the good economic data from the EU will continue boosting the single currency. The next important level will be 1.25, which some project might be reached within the first six months of 2018.
