Bloomberg Dollar Spot Index and USD Asset Manager Net Combined Asset managers are showing increasing optimism regarding the U.S. dollar, indicating a notable shift in market sentiment. Image: Bloomberg
Euro to U.S. Dollar (EUR/USD) The euro is under considerable downward pressure, experiencing its worst month in more than a year, largely due to worries about potential U.S. trade tariffs and a weakening economic outlook for the Eurozone. Image: Bloomberg
Bloomberg Dollar Spot Index – Average Monthly Performance The performance of the U.S. dollar shows significant seasonal patterns, especially in December, when it typically weakens. Since 2005, the dollar has averaged a decline of 0.5% in December. Image: Bloomberg
Euro to U.S. Dollar (EUR/USD) Goldman Sachs holds a pessimistic view on the EUR/USD currency pair, indicating that the euro is expected to depreciate against the U.S. dollar over the next 3 to 6 months. Image: Goldman Sachs Global Investment Research
Real Returns for U.S. Dollar-based Assets by Quarter Century While there have been periods of volatility and negative returns, real stock market returns over the past 25 years have been positive and in line with long-term historical averages. Image: Deutsche Bank
U.S. Dollar – Overall Weighted Valuations Ranked The U.S. dollar is considered the second most overvalued liquid currency globally, based on three valuation metrics: Purchasing Power Parity (PPP), Behavioral Equilibrium Exchange Rate (BEER), and Fundamental Equilibrium Exchange Rate (FEER). Image: Deutsche Bank
U.S. Dollar Index and Rest of the World GDP A weaker U.S. dollar typically bodes well for the global economy by boosting growth prospects, improving trade dynamics, and encouraging investment in international markets. Image: BofA Predictive Analytics
U.S. Dollar Forecast BofA’s outlook suggests a continued decline of the U.S. dollar until the end of 2025, driven by anticipated interest rate cuts and changing global economic conditions. Image: BofA Global Research
S&P 500 vs. U.S. Dollar Index A recovery in risk sentiment and higher equity prices has coincided with a weakening of the U.S. dollar, suggesting that investors are shifting their preferences towards riskier assets. Image: Goldman Sachs Global Investment Research
Rates and Dollar Forecast BofA expects the Fed to cut rates in September, adjusting its previous expectations. While market expectations for rate cuts have risen, the Fed hasn’t given a clear signal and will rely on data before making a decision. Image: BofA Global Research
U.S. Dollar to Japanese Yen (USD/JPY) Goldman Sachs has updated its projections for the USD/JPY exchange rate, anticipating the US dollar to reach 155 yen in three months, 155 yen in six months, and 150 yen in 12 months. Image: Goldman Sachs Global Investment Research