US Dollar Forecast

Federal Reserve Chair Jerome Powell sent a lighting rod through financial markets on the final day of November when he said he no longer expects inflation to be temporary.

The Euro-Dollar exchange rate ended last week with a steamrolling rally alongside the safe-haven Swiss Franc and Japanese Yen but could struggle for further traction over the coming days if global markets stabilise and as coronavirus related risks mount on the European continent.

GBP/USD may rebound if global markets recover but lingering Fed policy risks likely to limit upside.

GBP is predicted to come under pressure against the Euro and Dollar ahead over coming weeks and months, with a more sustained recovery only likely in the second half of 2022.

The Pound to Dollar rate has attempted to stabilise above November’s new 2021 low and could be likely to correct higher over the coming days if uncertainty about a White House decision on the leadership of the Federal Reserve prompts a momentary retrenchment of the greenback.

GBP/USD in short-term relief, but downside risks remain.

EUR/USD could succumb to fresh 2021 lows in the wake of the Federal Reserve policy update, according to analysis released ahead of the central bank's November policy update.

Analysts at HSBC have said there are only one in three outcomes to Thursday's Bank of England policy meeting that might support Sterling upside.

Pound Sterling has retraced from the peaks of its October rally against the Dollar and further losses are possible over coming days, particularly if the Bank of England disappoints markets by shying away from raising interest rates.

The Pound can still advance in value against the Dollar says a leading strategist we follow, supported in part by the stimulatory fiscal impulse provided by this week's budget announcement, although for now gains will likely be capped ahead of next week's central bank updates.

GBP/USD steadier & supported at 1.3724 & then 1.3713, but could struggle on any recovery above 1.3800.

GBP/USD buoyed after BoE confronts inflation risks, but momentum could fade on advance above 1.38.

Nordic lender and investment bank Danske have lowered their Euro to Dollar exchange rate forecast.

Analysts at Goldman Sachs are looking for the Dollar's rally to stall, an outcome that would open the door to a more sustained recovery in the Pound-to-Dollar exchange rate.

GBP/USD support at 1.3550 with upside risk short-term as resistance litters road above between 1.3698, 1.3758.

The Euro-to-Dollar exchange rate is forecast to outperform into 2022 as the Eurozone starts to deliver above trend economic growth and the anti cyclical Dollar retreats once more.

The Dollar is expected to retain its dominance ahead of the U.S. non-farm payroll report scheduled for release on Friday, helped by nervous investor sentiment.

GBP/USD steadier after rally off new 2021 lows, aided by UK growth upgrade & BoE policy shift.

The surging value of the Dollar is the latest talking point for global investors who fear it could become the latest addition to a growing list of headwinds to global economic growth.

GBP/USD was on the verge of breaking through two-year lows at the 1.35 level in mid-week trade before tentative buying interest returned.