US Dollar Forecast

JP Morgan is Bullish USD heading into the second half of the year and identifies Pound Sterling as a candidate to absorb much of this strength.

The Euro is set to extend a rally against the Dollar through the second half of this year says a new strategy note from investment bank Nomura which argues the worst might have already passed for the Eurozone economic data pulse.

The British Pound should remain supported says Goldman Sachs in an analysis of the currency's outlook that follows last week's Bank of England's decision to raise interest rates by 50 basis points.

EURUSD recovery is effectively over, according to a new analysis from European lender and investment bank ABN AMRO.

The U.S. Dollar will "not give up easily" says UniCredit Bank in a mid-year assessment of the currency market that shows a concerted break above 1.10 in the Euro to Dollar exchange rate (EURUSD) is a story for 2024.

GBP/USD testing cluster of resistances at 1.2867 & 1.2877 on chart, Bank of England is key risk this week.

Despite the sharp appreciation of the euro following the European Central Bank (ECB) meeting, Asmara Jamaleh, a researcher at Intesa Sanpaolo Bank, maintains a cautious stance on revising his euro forecasts higher.

Bank of America has raised its Pound forecasts saying the UK currency will remain supported despite the UK economy's "grim fundamental outlook".

The Euro extends a recovery against the Dollar ahead of this week's central bank meetings but analysts at Rabobank are not convinced the recovery will be sustained for a prolonged period.

The Euro to Dollar exchange rate has rebounded from near three-month lows in recent sessions and entered the new week on the front foot but U.S. inflation figures and interest rate decisions from the Federal Reserve (Fed) and European Central Bank (ECB) are just some of the factors that could undermine its recovery in the days ahead. 

The Swiss Franc should be in demand over the coming days say strategists at RBC Capital Markets and Barclays.

In a significant week for monetary policy, the U.S. dollar is poised to regain strength, with market analysts anticipating a positive trajectory.

The Euro to Dollar exchange rate (EURUSD) is still favoured to return back above 1.15, however, near-term Dollar strength will continue to frustrate any major recovery for some time yet.

GBPUSD could be at risk of retreating back to 1.20 over the coming weeks according to a new technical analysis from Bank of America, however, nearer-term studies suggest further consolidation nearer 1.24.

EURUSD is on course to test parity again according to analysis from Capital Economics.

"We believe this is a temporary comeback, but uncertainty is high and conviction low" - Swedbank.

Matthew Weller, Global Head of Research at FOREX.com, reports that the U.S. dollar is experiencing a rise against all major rivals, including the Euro, despite the absence of significant U.S. economic data.

Jefferies is looking for a stronger Dollar into year-end as a global slowdown and as U.S. funding issues drive demand for the U.S. unit.

Our bullish GBP/USD forecast is unlikely to change much.

GBPUSD hit a new one-year high at 1.2668 at the start of the week but technical analysis reveals it is looking stretched ahead of a key U.S. inflation release and Thursday's all-important Bank of England decision.