Exchange Rate Forecasts 2025-2026

The Euro is expected by a number of analysts to extend its period of weakness against the U.S. Dollar as delays to the rollout of the EU rescue fund combine with a slow vaccination rollout programme and a rapid spread of covid-19 to cast a shadow over the Eurozone.

The New Zealand Dollar is forecast to weaken modestly in the short-term and trend lower over the year by foreign exchange analysts at Barclays, who say the currency faces headwinds from the RBNZ and uncertainty about New Zealand's economic recovery.

The Dollar can continue to advance against the Euro and British Pound say foreign exchange analysts at Bank of America in a research briefing to clients, noting that a period of U.S. economic outperformance and Dollar "exceptionalism" is not going to evaporate in the foreseeable future.

Foreign exchange analysts at Barclays have updated clients with their latest foreign exchange forecasts, saying the British Pound is likely to remain strong while the Australian Dollar is prone to consolidation over coming weeks and months.

The British Pound can appreciate against the Australian Dollar in the near-term according to a leading Australian bank, however by the time 2021 is done the Pound-to-Australian Dollar exchange rate (GBP/AUD) is likely to be lower.

The Euro-to-Dollar exchange rate (EUR/USD) is under pressure amidst signs the covid-19 pandemic in the Eurozone is growing, leading to lockdowns and expectations that the bloc will lag others in the economic recovery.

The Dollar is being tipped to remain supported by foreign exchange analysts at Barclays who say the U.S. administration of Joe Biden will open the spending taps even wider over coming months.

Foreign exchange strategists at a leading European investment bank say they are compelled to retain an optimistic stance on the South African Rand's outlook.

The Australian Dollar will maintain an outperformance on global foreign exchange markets say analysts at a leading Australian lender and investment bank.

The New Zealand Dollar could underperform in the near-future we are told, as investors pare back expectations for an interest rate rise at the RBNZ at some point in coming months in the wake of last week's surprisingly poor economic data.

Pound Sterling is tipped to gains against the Euro over coming months, but a near-term pause in the Pound-to-Euro exchange rate (GBP/EUR) rally must be expected say analysts.

The Dollar is rising alongside the yield paid on U.S. government treasury bonds, a sure sign that the market did not buy into the Federal Reserve's message delivered at its March policy meeting.

A rapid vaccination rollout and a "great rotation" in stock markets are just two reasons why analysts at a leading investment bank have hiked their forecasts for the British Pound in 2021.

The British Pound is forecast to reach highs last tested in early 2020 before a multi-week run higher fades and potentially reverses, according to a leading analyst we follow.

The British Pound could recover to pre-Brexit referendum levels in 2021, according to analysts at independent research house Capital Economics.

The Australian Dollar is being tipped to undergo some near-term weakness by foreign exchange analysts at investment bank BNY Mellon, but they tell clients they remain optimistic on the currency's chances of appreciation over coming months.

In a weekly client briefing, strategists at the Wall Street bank's research desk say they prefer to "stick with longs", when it comes to approaching the Canadian currency.

UK high-street lender HSBC have told clients of their commercial and investment banking unit that 2021 will likely see the Pound continue to struggle.

"This raises the question of whether there is a meaningful Brexit discount priced into UK assets that is set to be unwound with Brexit safely behind us".