Loading...

USD Forecasts, Trends and News for 2020

OFX International Money Transfers

  • Low cost and transparent fees
  • Excellent customer service and advice
  • Support is available 24/7 online or by phone
  • Rapid funds transfer with large network of banking partners

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.

#Guides #Forecasts
Email share     Facebook     LinkedIn    Twitter
US dollar forecast

USD in the markets

Growing fears of the coronavirus outbreak has moved the market into safer currencies such as the USD and away from AUD, NZD and CAD.

The US dollar held its value in 2019 despite a serious escalation in US-China trade tensions, mainly because the greenback is still considered a safer currency to own than most others.

At its October meeting the Federal Reserve cut the target range for the federal funds rate to 1.5-1.75 percent, the third rate cut so far this year, amid soft inflation indicators and general worries about the economy. However the central bank also signaled a pause in the easing cycle.

Taking the blame for the economic downturn is US President Donald Trump, whose trade war policies have set a ball rolling that could wipe $455bn from global output according to the IMF.

USD/EUR – 6 month chart

US dollar forecasts

Though US interest rates are expected to fall, the US dollar might not come down as far or as quickly as some believe because monetary policies are being eased all over the world, and because the dollar attracts safe haven inflows (there’s an absence of good dollar alternatives).

HSBC said to expect a stronger USD relative to the Australian dollar and New Zealand dollar, and against riskier emerging market currencies.

Goldman Sachs forecast the downward course for Dollar to Yen to continue with a USD/JPY rate of 95 in the near future.

 

USD/EUR – Historical Rates

PeriodChange*USD/EURDate
1 Day-0.7%0.920808 Apr 2020
7 Day-0.8%0.922002 Apr 2020
30 Day+3.5%0.883910 Mar 2020
3 Month+1.7%0.899210 Jan 2020
1 Year+3.2%0.886810 Apr 2019
5 Year-3%0.943411 Apr 2015
10 Year+24.3%0.736212 Apr 2010

*For period to 09-Apr 21UTC when USD/EUR was 0.9148

You can also read our full Foreign Exchange Guide to the United States.

 

Related Articles

Coronavirus panic drives US dollar strength

Currency rates were extremely volatile last week as the coronavirus situation worsened day by day with various countries implementing ever-tougher measures to stop the spread of the disease.

Last update: 23 Mar, 2020

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

Last update: 8 Jan, 2020


Get a Better FX Deal when you Send and Spend Abroad.

 
Do NOT follow this link or you will be banned from the site!