The US dollar will remain weak and may experience some consolidation

ChainCatcher news, Lombard Odier strategists continue to expect the dollar to weaken over the next 12 months. In a research report, they stated that while some consolidation may occur, the likelihood of a larger recovery seems smaller. Investors are moderately shifting from U.S. assets to Europe and Japan, which poses a downside risk to the dollar, although the recent poor performance appears to have continued.

They indicated that a slowdown in U.S. economic growth and the possibility of unexpected growth in other regions by 2026 will lead to a weaker dollar and a higher euro/dollar rate. Our fair value estimate for euro/dollar is around 1.15, but considering higher foreign exchange volatility and more geopolitical uncertainty, it would be prudent to consider a broader range of 1.15-1.20.