After a bumper year for equities, strategists are forecasting further gains for 2018, while pointing to risks from rising bond yields and higher volatility.

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.