US dollar medium-term fundamental outlook - Westpac

Analysts at Westpac offered their outlook for the dollar 3 months ahead.

Key Quotes:

"Incremental news continues to signal there will be less tangible Trump stimulus than many had assumed. The struggle to craft legislation for a new health care bill that can pass the House, where Republicans enjoy a strong 21 seat majority is just the latest example."

"Tax reform and infrastructure will potentially run afoul of the same challenging political realities in a few months: even if Senate filibuster risks can be dodged via the 2018 reconciliation bill (needing just a simple majority vote) the Republican party remains divided on infrastructure, border adjusted taxes and gutting government agencies. We suspect the USD will falter into mid-year, but resume its uptrend thereafter."