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Carmignac: Why dollar pain means euro gain

With the US’s withdrawal from its global economic and geopolitical commitments, the dollar’s global status is being eroded

Carmignac: Why dollar pain means euro gain
Photo: Getty Images

The majority of the world’s most esteemed economists have had a terrible time trying to predict exchange rates. There are so many shifting but interconnected factors of varying importance that forecasting anything in this field is a big lesson in humility — and one that keeps repeating itself.

But the difficulty of making predictions doesn’t mean we shouldn’t try to understand why last year’s exchange rate trends look set to continue early in 2018.

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