Commerzbank Exchange Rate Forecast Update: U.S. Dollar Loses its Lustre, Enabling other Currencies to Rise

The U.S. Dollar is losing its lustre for investors and will decline steadily over the coming year, according to the latest forecasts from Commerzbank, which means other currencies that have been squashed by a resurgent Dollar this year will soon be given some breathing room.

The U.S. Dollar is likely to remain the dominant force in currency markets until well into the New Year, according to analysts at MUFG, who now project a slower pace of gains for most other currencies during the months ahead. 

The U.S. Dollar could struggle to extend its gains over the coming months, according to analysts at MUFG, who forecast that the greenback will cede ground to a number of it developed world rivals before year-end. 

The U.S. Dollar is set to continue its undisputed reign of dominance over currency markets during the quarters ahead according to the latest forecasts from Barclays, while the Pound, Euro and other currencies are likely to remain on the back foot as economic underperformance ties the hands of their respective central banks. 

Currency markets have been volatile in 2018 but the closing stages of the third-quarter are most likely to herald a continuation of recent trends, with President Donald Trump the only wild card, according to the latest exchange rate forecast update from National Australia Bank. 

Exchange rate forecasts for Pound Sterling as well as the Australian and New Zealand Dollars have been downgraded at Malayan lender Maybank, while projections for the US Dollar have been upgraded ahead of an regime change in the currency markets for 2019.

Pound Sterling and Euro exchange rate forecasts for year-end have been downgraded by Lloyds Bank, in its latest International Financial Outlook, following a month where the US Dollar has continued to reign supreme over all of its rivals. 

The Pound and Euro are set to rise only slowly over the coming year while the US Dollar will continue to reign supreme over currency markets for a while yet, according to the latest currency forecasts from Natwest Markets.