Dollar Forecasts for 2015: EURUSD And GBPUSD Exchange Rate Falls as Predicted
The 2014 dollar rally had long been predicted, however a poor winter in the United States saw the currency falter in the first half of the year putting paid to these predictions. After a decent summer of gains we ask whether the USD is about to restart its stalled longer-term climb again?
For your reference, here are the latest spot rates at the time of this article's latest update:
- The pound dollar exchange rate is 0.66 pct lower on a daily comparison at 1.6618.
- The euro dollar exchange rate is 0.35 pct lower at 1.3317.
Martin Schwerdtfeger at TD Securities tells us why he is predicting a stronger USD:
"Our G10 FX forecasts are largely unchanged this month. Our baseline
view of a stronger dollar on improving US data is gaining support and is
expected to remain a key theme in the year ahead. However, while for
now we maintain our end 2014 targets for GBP/USD (1.68) and EUR/USD
(1.32), downside risks are more evident."
"Rapidly improving economic fundamentals are likely to help US growth
performance lead the G7 pack as Japan and the Eurozone lag, allowing the
Fed to begin paring back monetary policy sooner," say TD Securities in
the their latest analysis of the US economy.
