US Dollar Forecast

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.

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.