DOLLAR STRENGTH SET TO CONTINUE The U.S. dollar could keep rising in the second half of 2026 as strong economic growth supports higher interest rates, according to Societe Generale. The bank expects the DXY dollar index to climb to 103.6 by year-end, while the euro could weaken to $1.11. Robust growth may also keep inflation above target, limiting pressure for rate cuts. *Walter Bloomberg (@DeItaone) / Twitter · 07-06 19:33
REUTERS POLL-EURO FORECAST TO TRADE AT $1.16 IN THREE MONTHS, $1.17 IN SIX MONTHS AND $1.18 IN A YEAR (VS $1.18, $1.19 AND $1.20 IN JUNE POLL) REUTERS POLL-US DOLLAR POSITIONING TO HOLD STEADY OR SEE NET LONGS INCREASE BY END-JULY, SAID 29 OF 41 FX STRATEGISTS; 12 SAID DECREASE *Walter Bloomberg (@DeItaone) / Twitter · 07-01 20:45
EUROPEAN WEALTH RISES, BUT U.S. STAYS FAR AHEAD Europeans grew wealthier in 2025, with average wealth per adult rising 17%, helped by a stronger euro. Still, average wealth in Europe ($337,083) remains less than half that of the U.S. ($696,277), according to UBS. The U.S. also remains home to more than 40% of the world's millionaires. *Walter Bloomberg (@DeItaone) / Twitter · 06-30 21:31
CENTRAL BANKS BOOST GOLD, REDUCE DOLLAR EXPOSURE More central banks now plan to reduce U.S. dollar holdings over the next decade while increasing allocations to gold and the euro. A net 30% expect to raise gold holdings, driven increasingly by geopolitical risks. Meanwhile, demand for euro assets is rising, and AI adoption is accelerating among central banks, with the U.S. and China seen as the most attractive investment markets. *Walter Bloomberg (@DeItaone) / Twitter · 06-30 19:50
CENTRAL BANKS PLAN TO CUT DOLLAR HOLDINGS Central banks expect to gradually reduce their U.S. dollar reserves, according to an OMFIF survey. While the dollar remains the world's dominant reserve currency thanks to its liquidity and safety, more central banks now plan to cut dollar exposure over the next decade. The euro and China's renminbi are the main alternatives, though both face structural challenges. *Walter Bloomberg (@DeItaone) / Twitter · 06-30 19:47
BOFA TURNS MORE BULLISH ON THE DOLLAR Bank of America cut its euro forecasts and now expects a stronger U.S. dollar in the second half of 2026, citing resilient U.S. economic data and a hawkish Federal Reserve. The bank sees EUR/USD ending Q3 at 1.12 and 2026 at 1.15, while warning that further Fed tightening could keep pressure on the euro. *Walter Bloomberg (@DeItaone) / Twitter · 06-25 23:59