Editor’s Note: Currency Watch provides a look ahead at next quarter, a 52-week look at high/low/last, market indices, U.S. dollar index, hazard forecast, and an overall currency report year-to-date. For a look back at earlier reports from this year and last, visit our Currency Watch archive.
The U.S. dollar has continued its upwards trend, appreciating over 9% YTD on the DXY index. Given the current state of the U.S. economy and the possibility of Fed's raising interest rates, we can expect the dollar to continue strengthening throughout the year.
In Canada, the loonie has depreciated -8.3% YTD against the dollar and as oil surpluses remain high driving down the price per barrel, we anticipate the CAD will continue depreciating, at least in the near run.
The euro has been hard hit this year, depreciating more than -10% YTD against the dollar. As the ECB continues with its version of "monetary easing" or "bond buying program," we could see the euro make history and reach parity with the dollar.
Australia and the Aussie dollar have also been hit hard this year due to a lackluster economy and the currency is trading down -4.9% YTD. As we move further into the year we expect the Aussie to continue depreciating as company's look elsewhere for higher returns on their cash reserves.
About the Expert: Nathan Carroll is a former professional surfer from Sunset Beach, Hawaii, who helps companies in the action sports industry manage their foreign currency risk. If you have foreign exchange questions please submit them to: [email protected]