FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, March 12, 2018. The euro weakened after the European Central Bank cut inflation and growth forecasts and struck a cautious tone about the outlook for the world economy.It may not be all gloom for the greenback. Some analysts think dollar strength can return if the Fed remains relatively confident about next year’s monetary tightening path.“Personally, I think the Fed will continue to normalize policy next year and I don’t think it will send the US economy into recession,” said ACLS analyst Marshall Gittler.“An economy where there are more job offers than unemployed persons doesn’t need such super-stimulus. That’s why I remain bullish on the dollar,” he added.In a tweet overnight, U.S. President Donald Trump took another swipe at the Fed saying it was “incredible” for the central bank to even consider tightening given the global economic and political uncertainties.The markets, however, looked past Trump’s now-familiar comments on the Fed.The yen gained about 0.3 percent on the dollar as investors’ fears of slowing global growth increased demand for safety assets. The Swiss franc, another safe haven, also tacked on 0.2 percent.Sterling, which has been heavily sold off in the past few months on Brexit uncertainty, held steady at $1.2653.The kiwi firmed to $0.6845, buoyed in part by improved business confidence data.

Source: Egypt Today December 18, 2018 09:22 UTC