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Analysis: US Dollar to Remain Weak, Possible Consolidation Ahead
Summary: In a report cited by FXStreet, Lombard Odier strategists continue to forecast a weakening US dollar over the next 12 months. They suggest that while some consolidation may occur, the likelihood of a significant recovery seems slim. Investors are shifting moderately from US assets to Europe and Japan, posing downside risks for the dollar, although ...
In a report cited by FXStreet, Lombard Odier strategists continue to forecast a weakening US dollar over the next 12 months. They suggest that while some consolidation may occur, the likelihood of a significant recovery seems slim. Investors are shifting moderately from US assets to Europe and Japan, posing downside risks for the dollar, although recent poor performance appears to persist.
They indicate that slowing US economic growth and the potential for unexpected growth in other regions in 2026 will lead to a weaker dollar and a higher euro/dollar exchange rate. Their fair value estimate for the euro/dollar is around 1.15, but considering higher forex volatility and increased geopolitical uncertainties, a broader range of 1.15-1.20 would be prudent.
