U.S. Dollar Will Rise Further in 2019 as Analyst Community gets "Trampled Again" say HSBC

The Dollar will strengthen further in the coming year and is a "buy" under most scenarios, according to analysts at banking titan HSBC, who warned this week that the analyst community is about to get "trampled again" because of its reticence toward the U.S. currency. 

The Dollar edged lower against most currencies Monday as traders await the next move in President Donald Trump's so-called "trade war" with China, following a series of reports suggesting tensions could escalate in coming days. 

GBP/USD remains in a short-term uptrend and a break of the previous week's highs will provide green-light for bulls. Brexit and inflation data dominate Sterling's calendar this week, while for the Dollar Trump's trade crusade will be the key driver.

The Dollar strengthened Friday after U.S. retail sales surprised on the downside for August, in what appeared to be a classic sign of risk-aversion, as analysts contemplate what the numbers mean for the economic outlook.

"The market is now decisively above $1.3000 and is now having a look at the late July resistance $1.3170" - Richard Perry, Hantec Markets.

The Dollar handed back previous gains to be seen swathed in red Thursday after inflation data surprised on the downside for August, reinforcing an earlier downward bias arising from signs of a fresh detente in the US "trade war" with China.

A decision on latest tariffs could come today and with looming mid-term there is a good chance Trump will keep trade war fires burning for the foreseeable future.

Foreign exchange strategists are increasingly of the belief that the current recovery in the Pound might extend further, "this is a recovery that is building nicely now" says Richard Perry, an analyst with Hantec Markets.