The synchronized growth witnessed in 2017 is expected to continue this year, according to economists, who say markets can weather the gradual normalization of monetary policy.
Despite the Fed’s and the ECB’s divergent trajectories, the dollar fell against the euro to $1.18 in December from $1.05 in January, confounding expectations. At the start of 2017, the average forecast from five banks pointed to the euro ending the year at $1.05.