US Dollar Forecast

Investors are being told to position for further spasms in the U.S. regional banking space, a development that could lead to further declines in some equities, bonds and the Dollar.

The EUR/USD is clearly going to be in focus this week with both the Fed and ECB rate decisions to come ahead of U.S. non-farm payrolls report on Friday.

EUR/USD has peaked and will likely trend lower over a three-month horizon, before rebounding strongly over the 12-month horizon.

GBP/USD is rising again as global equity markets recover with a push to 1.25 being possible if Thursday's U.S. GDP reading disappoints.

The Euro to Dollar exchange rate (EUR/USD) is forecast higher at HSBC with analysts saying their conviction has been cemented by the most recent set of Balance of Payment (BoP) figures from the Eurozone.

The Dollar could be about to make another leg lower that will allow the Euro and Pound to rally to fresh multi-month highs before the northern hemisphere's summer sets in, however, a lull in price action might then be expected.

UniCredit Bank forecasts further Euro gains against the Dollar that will bring new year-to-date highs above 1.10.

BNP Paribas Securities Corp's Head of Americas Macro Strategy, Calvin Tse, has suggested that the US dollar (USD) could be set for a multi-year structural decline due to several factors.

The Pound to Dollar exchange rate has rallied strongly in recent months and could rise further to 1.30 or so before the curtain closes on 2023.

Stock index futures and crude oil also jumped. The EUR/USD neared 1.10.

The GBP/USD reached 1.25 handle last week, before dipping back below the high of its prior range around 1.2450. This level is now very important.

GBP/USD recovery disrupted by soft U.S. data, as resistance stymies path above 1.25 on chart.

"I reckon it is a matter of time before the EUR/USD breaks that barrier" - Fawad Razaqzada, City Index.

The Pound to Dollar exchange rate eased from close to one-year highs in the final session of a holiday-shortened week for some markets but the trend on the charts has shifted in favour of further gains and many analysts are tipping new highs for the months ahead. 

Currency tacticians at HSBC are looking for the Dollar to test 2023 lows over the coming weeks, allowing for a higher EUR/USD.

The British Pound is a 'buy on dips' as a brighter UK economic outlook combines with a broader Dollar retreat to keep 2023's uptrend in GBP/USD say analysts.

USD/JPY rallied strongly midweek, gaining nearly 150 pips. Mathew Weller, Global Head of Research at FOREX.com says the next levels of resistance to watch are at 132.850 and 135.00 if the near-term rally extends.

The Dollar index is poised to extend its recent run of losses, according to a new analysis, a move that will offer a near-term boost for EUR/USD.

A move to 1.27 would offer Sterling sellers their greatest purchasing power since April 2022.

Capital Economics, the independent economics research provider, maintains a view the Dollar will continue to strengthen over the coming weeks, but it should turn lower from around mid-year.