Dollar rebound seen fading as most FX strategists still forecast weakness
AI Market Summary
A Reuters FX poll highlights a growing split on the USD after a ~4% rebound, with most strategists still expecting renewed weakness as cooler oil prices reduce inflation pressure and markets potentially reprice Fed hike expectations lower. However, elevated yields, resilient U.S. data, and higher long-USD positioning signal near-term support. The balance of risks keeps G10 FX sensitive to Fed messaging and energy-driven inflation dynamics.
Impact level
● Medium
Affected assets
NCSIDXY2USD/USDT+0.20%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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Most currency strategists still expect the U.S. dollar to weaken in the months ahead, even after a roughly 4% rebound from May’s low, a Reuters FX poll conducted June 26–July 1 showed. They pointed to cooling oil prices that are easing inflation worries and reducing expectations for Federal Reserve rate hikes. A growing minority has turned less bearish, with about one-third now forecasting the euro to be flat or lower against the dollar over the next three months. Oil was cited as a key driver of the outlook.
