In addition, a busy electoral calendar in Europe will be another source of concern for investors in light of the recent rise of populist movements and euro scepticism as the European political agenda looks busy in 2017. As a result, the dollar’s strength is expected to remain with the euro against the dollar to move near to parity and could break it by year-end.
Figure 8. EUR-USD and real yields  Source: Bloomberg. • Against the British pound: The Brexit risk overshadows everything The US dollar rose against the pound by more than 16% on a yearly basis last year.