Credit Suisse lowered their forecast for the dollar

Forex analysts of Credit Suisse lowered their forecast for the dollar in the short and long term. According to strategists, the significant change of expectations about the pace of tightening of monetary policy in the US will weigh on the currency. Furthermore, investors seem to pay less attention to the stimulus measures launched by the European and Japanese central banks.

Against this background, the experts of Credit Suisse expect the exchange rate USD/JPY after three months to amount Y110, against Y120, predicted earlier. Annual forecasts were revised from Y125 to Y105.

The euro is no longer expected to reach parity as EUR/USD will probably trade at $ 1.1000 after year and quarterly assessment was adjusted from $1.0800 to$ 1.1700.

Quarterly forecasts for GBP/USD have been revised from $1.4000 to $1.4300, and annual - from $1.3300 to $1.3750.

My personal opinion from a long time is, that the parity between euro and USD is a chimera for at least next 10 years (two economic cycles).