Divergence to drive dollar in 2017
Fiscal expansion and monetary policy tightening are likely to drive up the dollar in 2017
The euro could plunge below parity against the dollar by the end of 2017 if market expectations for a strong year for the greenback prove to be on the money and the fiscal expansion project slated for 2017 combined with a hawkish Federal Reserve conspire to boost the currency.
With Donald Trump set to move into the White House at the end of the month, market participants are bracing for a shift in fiscal policy which could see some $1 trillion spent on infrastructure projects in the US.
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