We mentioned at school concerning the latest pattern of the valuation of main currencies together with U.S. greenback. Particularly the article from The Economist, “The destiny of the greenback will form monetary markets in 2019” offered some concepts on the causes of the latest greenback appreciation and likewise on some eventualities of potential pattern of main foreign money values in close to future.
a) (5 factors) Clarify the potential financial explanation why U.S. greenback appreciated towards different main currencies together with pound sterling, Euro and Japanese yen in 2018.
b) (10 factors) The creator of the article presents two potential eventualities of greenback depreciation path over the following 12 months or so, relying on the dynamics of three components – i) Fed’s resolution on rate of interest, ii) commerce dispute between U.S. and China, and iii) Euro-zone financial system. Current your ideas on the foreign money valuation change (i.e., whether or not will admire or depreciate) and its tempo of the related economies (i.e., U.S. China, Europe, and many others.) in gentle of these three components.