News & Analysis

The dollar defied our expectations in June after the Federal Reserve surprised with a hawkish outlook on the US economy, signalling two rate hikes as early as 2023. We have adjusted our July forecasts to account for the more sensitive Fed reaction function, but broadly we expect the trend of mild dollar depreciation to continue, albeit from a higher base than in June. However, we have flagged currencies such as CNY, JPY and EUR as more sensitive to the Federal Reserve’s new outlook on the US economy and have therefore adjusted their forecast paths more aggressively against the dollar.

You can now read Monex Europe’s latest FX Forecasts report in full by clicking the download link below.



Simon Harvey, Senior FX Market Analyst
Olivia Alvarez, FX Market Analyst
Ima Sammani, FX Market Analyst



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