Loading...

USD Forecasts, Trends and News for 2020

OFX USA - 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 from U.S. 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.

A June Reuters poll of analysts had EUR/USD at $1.17 by mid-2020.

 

USD/EUR – Historical Rates

PeriodChange*USD/EURDate
1 Day+0.4%0.922617 Feb 2020
7 Day+1.1%0.915911 Feb 2020
30 Day+2.8%0.901319 Jan 2020
3 Month+2.6%0.902720 Nov 2019
1 Year+4.8%0.884018 Feb 2019
5 Year+5.3%0.879819 Feb 2015
10 Year+25.7%0.737220 Feb 2010

*For period to 18-Feb 21UTC when USD/EUR was 0.9263

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

 

Related Articles

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

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 7 Jan, 2020

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 7 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!