US Dollar Forecast

The Euro to Dollar exchange rate entered the new week at nine-month highs and with scope for an extended recovery above above 1.09 and toward the 1.10 handle as a more benign global economic backdrop and hawkish European Central Bank (ECB) policy stance benefit the single currency.

The Federal Reserve is on course to cut interest rates as early as mid-2023 according to new research and the Euro will appreciate "significantly" against the Dollar as a result.

Morgan Stanley says it has "doubled down" on its bearishness towards the U.S. Dollar in 2023, prompting it to lift its Pound to Dollar exchange rate forecast.

The Euro to Dollar exchange rate entered the new week supported by a rising global market tide that could see nine-month highs around 1.08 traded over the coming days but Thursday's U.S. inflation figures are a potential banana skin for the single currency.

The Pound to Dollar exchange rate has sharply reversed its New Year losses and could rise further this week if global markets build on last Friday's gains but public remarks from Federal Reserve (Fed) officials and the latest U.S. inflation figures are potential risks to the recovery.

HSBC predicts GBP & EUR to turn tables on GBP in 2023.

Foreign exchange analysts are considering the prospect of a near-term retreat in GBP/USD back below the psychologically significant 1.20 level.

The Euro to Dollar exchange rate reached eight-month highs last week but could struggle for traction this week if profit-taking or book-squaring ahead of the festive holiday leads the speculative market to reduce its exposure to the single currency, which is one of the market's few 'net long' positions. 

The Pound to Dollar exchange rate was toppled at six-month highs last week as deteriorating economic data and hawkish central banks drove a rout in risky assets but Sterling could benefit this week if the forthcoming holiday period leads the speculative market to lighten up on its own risk for a while. 

The Euro to Dollar exchange rate has held onto much of November gain in early December trade but technical resistances continue to frustrate its path above 1.06 and Tuesday's U.S. inflation data is likely to be decisive of whether it can overcome those obstacles on the charts in the week ahead.  

The Pound to Dollar exchange rate has remained buoyant near nine month highs in recent trade but it could be volatile in the days ahead when a pending deluge of important UK and U.S. economic data points will set the stage for the latest interest rate decisions from the Federal Reserve (Fed) and Bank of England (BoE).

The U.S. Dollar remained close to the top performing currency of 2022 this week but a decisive turn lower may not be that far off and this is something that would be likely to favour developed market currencies over their emerging market counterparts, according to research from Goldman Sachs. 

Citi says the British Pound will retreat towards 2022's lows over the coming months.

Technicals look for more GBP/USD upside.

Intesa Sanpaolo raises Euro-Dollar forecasts.

The Pound to Dollar exchange rate reached multi-month highs last week after Federal Reserve (Fed) and Chinese health officials appeared to inspire in investors an almost Pavlovian appetite for chasing risky assets but it remains to be seen if the rally can survive this week's U.S. economic data offering.

GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

Italy's UniCredit Bank is betting on a renaissance in the Euro through 2023, particularly against the Dollar and Swiss franc.

The Euro to Dollar exchange rate (EUR/USD) is being tipped to advance over the course of December, a traditionally strong month for this pair.

The Euro to Dollar exchange rate has benefited significantly from the final quarter's risk asset rally but its recovery has recently been stalled by technical resistances around 1.04 on the charts and could give way this week to losses that pull the single currency back toward 1.0303 or below in the days ahead.