The Federal Reserve announced Wednesday a quickening of asset tapering and signaled three rate hikes in 2022.
Chester Ntonifor, FX Strategist of BCA Research discusses with David Lin, anchor for Kitco News, the direction of the U.S. dollar in next year.
“It’s pretty priced in that the Fed is going to lift interest rates in 2022 and the ECB is going to lag the Fed, so that’s already in the price of the dollar versus the euro,” Ntonifor said.
The dollar index, or DXY, will likely fall to 90 over the next 12 months, but in the immediate term, investors can expect continued strength, Ntonifor noted.
“I think it’s not going to crash but a drop from current levels of 96 towards 90 over 12 to 18 month-horizon…
