Foreign exchange analysts at Danske Bank expect the US Dollar to gain ground during the year ahead, primarily under the influence of a very strong US economic recovery.
After little change on a 1-month view, the Euro-to-Dollar exchange rate ( EUR/USD ) is expected to weaken 0.7% to 1.1800 on a 3-month view. The losses are expected to continue on a 6 and 12-month view with levels of 1.1700 and 1.1500 which represent decline of 1.6% and 3.24% respectively from current levels.
The bank also expects steady USD/JPY gains during the forecast period with a sharp upgrade from February’s forecasts.
A gain of 1.3% to 110.00 is forecast on a 6-month view with a further advance to 112 on a 12-month view, a gain of 3.2% from the current spot level.
Euro Pound Tipped to Retreat Further
Sterling is forecast to maintain a solid tone with overall moves influenced strongly by changes in the EUR/USD rate.
In this context, the Pound US Dollar ( GBP/USD ) exchange rate is projected to reverse the most recent losses and secure a 1.4% advance to 1. 40 on a 1-month view.
Thereafter, the GBP/USD is projected at 1.3900 throughout the 3, 6 and 12-month periods which would represent a 0.7% advance from the current spot rate.
With the single currency generally vulnerable, the Euro Pound rate is forecast to post further losses.
EUR/GBP is forecast at 0.85 on a 1 and 3-month view, a decline of 1.3% from the current spot level.
A further retreat to 0.84 is forecast on a 6-month view with a net loss to 0.83 on a 12-month view, a loss of 3.7% from the current spot level.
Commodity currencies are forecast to decline amid a strong US dollar .
After a slight rebound on a 1-month view, the Australian Dollar-to-US Dollar ( AUD/USD ) exchange rate is forecast to decline 1.0% to 0.7600 on a 3-month view.
A further retreat to 0.73 is forecast on a 12-month view, a decline of 4.9% from the current spot value.
A similar pattern is projected for the New Zealand dollar with losses limited by the slide in spot prices recorded today.
The New Zealand Dollar-to-US Dollar ( NZD/USD ) exchange rate is forecast to recover 0.9% to 0.710 on a 1-month view.
After slight losses on a 3-month view, Danske forecasts a decline to 0.69 on a 6-month view and 0.68 on a 12-month view which equates to losses of 1.9% and 3.3% respectively from current spot levels.
The Norwegian krone and Swedish krona not expected to sustain initial gains.
The Euro-to-Krone rate is forecast to weaken to 10.00 on a 1-month view, a decline of 1.9%. Thereafter, the rate is expected to recover with no net change from spot levels on a 6-month view and a gain of 1.1% to 10.30 on a 12-month view.
The euro is forecast to decline 0.9% to 10.10 on a 1 and 3-month view.
The pair is then forecast to strengthen to 10.2 on a 6-month view and 10.4 on a 12-month view, a gain of 0.1% and 2.1% respectively from current spot levels.
After little change on a 1-month view, the Euro-to-Dollar exchange rate ( EUR/USD ) is expected to weaken 0.7% to 1.1800 on a 3-month view. The losses are expected to continue on a 6 and 12-month view with levels of 1.1700 and 1.1500 which represent decline of 1.6% and 3.24% respectively from current levels.
The bank also expects steady USD/JPY gains during the forecast period with a sharp upgrade from February’s forecasts.
A gain of 1.3% to 110.00 is forecast on a 6-month view with a further advance to 112 on a 12-month view, a gain of 3.2% from the current spot level.
Euro Pound Tipped to Retreat Further
Sterling is forecast to maintain a solid tone with overall moves influenced strongly by changes in the EUR/USD rate.
In this context, the Pound US Dollar ( GBP/USD ) exchange rate is projected to reverse the most recent losses and secure a 1.4% advance to 1. 40 on a 1-month view.
Thereafter, the GBP/USD is projected at 1.3900 throughout the 3, 6 and 12-month periods which would represent a 0.7% advance from the current spot rate.
With the single currency generally vulnerable, the Euro Pound rate is forecast to post further losses.
EUR/GBP is forecast at 0.85 on a 1 and 3-month view, a decline of 1.3% from the current spot level.
A further retreat to 0.84 is forecast on a 6-month view with a net loss to 0.83 on a 12-month view, a loss of 3.7% from the current spot level.
Commodity currencies are forecast to decline amid a strong US dollar .
After a slight rebound on a 1-month view, the Australian Dollar-to-US Dollar ( AUD/USD ) exchange rate is forecast to decline 1.0% to 0.7600 on a 3-month view.
A further retreat to 0.73 is forecast on a 12-month view, a decline of 4.9% from the current spot value.
A similar pattern is projected for the New Zealand dollar with losses limited by the slide in spot prices recorded today.
The New Zealand Dollar-to-US Dollar ( NZD/USD ) exchange rate is forecast to recover 0.9% to 0.710 on a 1-month view.
After slight losses on a 3-month view, Danske forecasts a decline to 0.69 on a 6-month view and 0.68 on a 12-month view which equates to losses of 1.9% and 3.3% respectively from current spot levels.
The Norwegian krone and Swedish krona not expected to sustain initial gains.
The Euro-to-Krone rate is forecast to weaken to 10.00 on a 1-month view, a decline of 1.9%. Thereafter, the rate is expected to recover with no net change from spot levels on a 6-month view and a gain of 1.1% to 10.30 on a 12-month view.
The euro is forecast to decline 0.9% to 10.10 on a 1 and 3-month view.
The pair is then forecast to strengthen to 10.2 on a 6-month view and 10.4 on a 12-month view, a gain of 0.1% and 2.1% respectively from current spot levels.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.