Thoughts on How the US Dollar Might Perform in 2020 @ Forex Factory

The global economy continued to slow in 2019. Growth has held up well in the United States, but has decelerated in many other major economies as a diverse range of challenges weigh on global activity. These include political uncertainty in many European and Latin American countries, financial turbulence in some large emerging markets, China’s efforts to address corporate debt vulnerabilities, and ongoing geopolitical tensions. Growth has also been held back by inadequate policy support, especially from fiscal policy, as well as elevated leverage in both the private and public sectors in major economies. The International Monetary Fund (IMF) forecast global growth at 3.0 percent in 2019, its slowest pace since the global financial crisis. In this context, it is critical that fiscal and structural policies in major economies work in tandem with monetary support to bolster near-term activity and medium-term growth prospects. Many countries, particularly Germany, the Netherlands, and Korea, have sufficient fiscal space for substantial pro-growth stimulus, which could help reduce the pressure for further monetary accommodation. Structural tweet at 5:03pm: US Removes China FX-Manipulator Label, Citing FX Commitments – Names No Currency Manipulators tweet at 5:03pm: [RTRS] 13 Jan – TREASURY SAYS TAIWAN, THAILAND CLOSE TO TRIGGERING THRESHOLDS TO BE ADDED TO CURRENCY MONITORING LISTChina no longer a currency manipulator, U.S. Treasury says In another sign of thawing relations, the U.S. Treasury on Monday formally stepped back from its decision last year to label China a currency manipulator. “Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the department said in its semi-annual report on currency intervention. Treasury said that the Phase One trade deal to be signed this week contains enforceable commitments by China to refrain from currency devaluation and not target its exchange rate for competitive purposes. China has also agreed to publish relevant information related to exchange rates and external balances. The report said Treasury had previously designated China a currency manipulator after the country “took concrete steps” over the summer to devalue the renminbi. After depreciation as far as 7.18 RMB per U.S. dollar in early September, the RMB subsequently appreciated in Oct