Yen Rally Expected in 2025, But Substantial Gains Unlikely: Capital Economics
The Japanese yen has gained strength recently, boosted by falling U.S. Treasury yields. Analysts at Capital Economics predict the currency will continue to appreciate modestly through 2025. By 10:20 ET (15:20 GMT) on January 16, the USD/JPY pair had dropped 0.4%, trading at ¥155.74, just above its weakest point since December 19. The yen’s rise […]
Bank of America Highlights Changes in Indian Rupee Volatility Amid RBI Policy Shift
Bank of America (BofA) analysts have observed a noticeable shift in the behavior and volatility of the Indian Rupee (INR), pointing to changes in how the Reserve Bank of India (RBI) manages the currency. According to the report, the RBI has transitioned from relying heavily on foreign exchange reserves to stabilize domestic monetary conditions. Instead, […]
UBS Predicts Dollar Rally to Ease in Second Half of 2025
The U.S. dollar has kicked off 2025 with impressive gains, hovering near multi-decade highs. However, UBS strategists anticipate a shift in the second half of the year, as they believe the greenback is now significantly overvalued. “Although the dollar has continued to strengthen in early 2025, we expect the year to unfold in two distinct […]
Yen Faces Pressure from Possible Upside in U.S. Inflation Data, Says BofA
The Japanese yen has managed to hold steady against the dollar despite the greenback’s recent rally, benefiting from its reputation as a safe-haven currency during market sell-offs. However, this resilience may waver if U.S. inflation data, set to be released later this week, comes in higher than expected, according to analysts from BofA Global Research. […]
Is It Time to Bet Against the Dollar? Analysts Suggest the ‘Trump Trade’ May Be Fully Priced In
The U.S. dollar recently soared to multi-year highs, prompting some analysts to argue that the currency’s latest rally has already accounted for the so-called “Trump Trade,” leaving limited upside potential and opening the door for bearish positions on the greenback. On Friday, the U.S. Dollar Index climbed 0.5% to 109.67, briefly touching 109.91—a level not […]
Bank of America Predicts Stronger Dollar Through 2025, Euro and Franc Expected to Lag
Bank of America analysts have updated their long-term projections for the U.S. dollar, now forecasting a stronger performance through the end of 2025. This shift follows recent U.S. election results, which have altered the broader consensus among currency experts. While previous outlooks were bearish on the dollar for the latter part of 2024, sentiment has […]
US Dollar Overvalued Amid Historic Highs, Says BoA Securities
Bank of America Securities has described the US dollar as “priced for perfection” following its sharp rally since the most recent presidential election. The currency reached a 55-year high in real effective terms by the end of 2024, continuing an upward trend that began in mid-2011. Analysts at BoA noted that in nominal terms, the […]
Bank of America Predicts Swiss Franc Weakness May Be Short-Lived in 2025
Analysts at Bank of America (BofA) have raised questions about the sustainability of the recent decline in the Swiss Franc (CHF). While many investors are shorting the CHF due to expectations of policy divergence, BofA argues that the currency’s current weakness might not persist for long. The Swiss Franc remains near the levels it traded […]
Bank of America: No Evidence of Dollar Downtrend Despite Recent Selloff
The U.S. dollar faced a sharp decline on Monday, dropping over 1% after the announcement of a “universal tariff” plan by the new U.S. administration. The move has sparked speculation about whether the dollar is entering a prolonged downtrend, reminiscent of its consistent decline during President Trump’s first year in office in 2017. However, analysts […]
Dollar Set for Strongest Weekly Gain in a Month
The U.S. dollar softened slightly on Friday but remained on course for its strongest weekly performance in a month. Investor optimism about the U.S. economy’s ability to outperform global peers has bolstered the currency, driven by expectations of relatively higher interest rates and strong economic fundamentals. A robust labor market and persistently high inflation have […]