# US: Weaker dollar is here to stay – Capital Economics — Octa

> Capital Economics says the trade-weighted dollar has depreciated by almost 10% since the start of 2017 and is about 8% below its early-2017 peak. It expects the dollar to hold roughly steady over the next year or two, while depreciating against developed-market currencies such as the euro. Rate expectations have risen but have not lifted the dollar.

- Date: 2018-02-21 · published 2018-02-21T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/66699-us-weaker-dollar-is-here-to-stay-capital-economics-octa
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A stable-to-weaker dollar keeps US commodity prices supported in global terms and helps export demand. The forecast of further euro strength could shift competitiveness for European buyers and feed trade flows.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-12-13 | [US dollar strength likely to wane a bit further in 2024 \| Capital Economics](https://feedsoft.ai/events/8717-us-dollar-strength-likely-to-wane-a-bit-further-in-2024-capital-economics.md) | -1.0% | -0.7% |
| DXY | 2021-08-27 | [Dollar depreciation unlikely to last \| Capital Economics](https://feedsoft.ai/events/45478-dollar-depreciation-unlikely-to-last-capital-economics.md) | -0.9% | -0.0% |
| DXY | 2020-12-11 | [USD: FOMC action to keep dollar on weaker footing – MUFG — Octa](https://feedsoft.ai/events/49846-usd-fomc-action-to-keep-dollar-on-weaker-footing-mufg-octa.md) | -0.7% | -0.4% |
| DXY | 2019-06-20 | [Sterling heads higher on weaker dollar](https://feedsoft.ai/events/58853-sterling-heads-higher-on-weaker-dollar.md) | -1.1% | -0.8% |
| DXY | 2019-11-01 | [US dollar could weaken to 85 on the dollar index: Citi](https://feedsoft.ai/events/56262-us-dollar-could-weaken-to-85-on-the-dollar-index-citi.md) | +0.2% | +0.9% |
| EURUSD | 2023-04-27 | [Euro near one-year peak as US economic risks weigh on dollar](https://feedsoft.ai/events/36622-euro-near-one-year-peak-as-us-economic-risks-weigh-on-dollar.md) | -0.0% | -2.7% |
| EURUSD | 2017-05-23 | [Economic prospects to maintain support for the euro \| Capital Economics](https://feedsoft.ai/events/71210-economic-prospects-to-maintain-support-for-the-euro-capital-economics.md) | -0.5% | -1.0% |
| EURUSD | 2026-01-30 | [Europe wonders whether it can afford to take on the US dollar – POLITICO](https://feedsoft.ai/events/21269-europe-wonders-whether-it-can-afford-to-take-on-the-us-dollar-politico.md) | -1.2% | -1.0% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/542106/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.