The USD is still likely to fall further in the first half of 2021. However, unlike the second half of 2020, the path down for the U.S. dollar will likely be more volatile as the Fed walks this narrowing tightrope between significant above-trend growth and the diminishing need for stimulus against the intent to more convincingly achieve its inflation objective.
The UK remains very much out of favour, with only Russia and Brazil performing worse year-to-date, and asset allocators still reluctant to look at UK equities, which are even cheaper than they were a year ago.
As the UK reinvents itself as an independent sovereign state – but with an EU trade agreement in place – just what will this mean for business, investment and the wider economy in both markets? Here BNY Mellon Investment Management firms share their thoughts.