Forecasts for the US dollar change all the time, affected by news events and relative sentiment towards the US economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of USD in the currency markets.
What’s in this US dollar forecast summary?
Most banks and forecasters expect the down trend for USD to continue, with some predictions of a 20 per cent or more fall for the greenback in 2021.
The US dollar has dropped steadily in the last quarter against nearly all major currencies. In mid December the US Dollar fell to a nearly three year low with the US Dollar Index hitting its lowest value and falling below 90 for the first time since January 2018.
In the long term, economic fundamentals suggest weakness for the USD. The Federal Reserve promised to keep interest rates low until signs of inflation. In December we expect the USD to experience some volatility but should at least remain range-bound against euro, AUD, NZD, CAD and GBP. December Currency Update