The economists at BNP Paribas Research review their goals for the EUR/USD and the USD/JPYas they expect the dollar to start a downtrend.
A multi-year downtrend in the USD is underway
“We expect dollar strength to be short-lived. In fact, we believe a multi-year USD downtrend is underway, with portfolio flows increasingly negative for the currency.”
“Yields turning positive in Europe and Japan could spur repatriation by local investors, we note that they have built up significant exposure to US fixed income since 2014. Given evidence of these repatriation flows, we revised to We have lowered our USD forecast and now project EUR/USD to rise to 1.14 by the end of 2023 and USD/JPY to fall to 121.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
