US Dollar: Fed-driven strength and revised path – OCBC

Source Fxstreet

OCBC’s Sim Moh Siong and Christopher Wong highlight that a more hawkish Federal Reserve and flatter US yield curve have replaced high Oil prices as the main support for the Dollar. Their new forecast sees EUR/USD at 1.11 and USD/JPY at 163 by year-end, with DXY projected to gain 2–3% and low-yielders like the Swiss Franc and Japanese Yen under pressure.

Fed signals underpin stronger Dollar

"The USD strengthened despite weaker terms of trade from lower oil. A more hawkish Fed and flatter yield curve have replaced high oil prices as the main support for the USD."

"Two messages stand out from the hawkish Fed signals. First, it has reassured markets on policy independence, triggering an unwind of debasement trades through lower gold and crypto, a flatter curve and a stronger USD. Second, with the Fed back in focus, the USD is realigning with rate differentials after the earlier dislocation during the energy shock."

"New USD forecast: EUR/USD at 1.11 (previous: 1.18) and USD/JPY at 163 (previous: 155) by year-end. Hawkish Fed signals lift USD, shifts our view to modest strength from rangebound. DXY breakout targets 2 to 3 percent upside; 5 percent move requires oil surge or US overheating scenario."

"A firmer USD alongside widening rate differentials tends to weigh most on low-yielders such as CHF and JPY. Procyclical carry can still perform, but trade resilience will depend on selecting appropriate funding currencies."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Why are prediction market traders suddenly bearish on Nvidia's stock?Nvidia (NASDAQ: NVDA) stock is still green for 2026, but the trade no longer looks clean from the company that outperformed every other company and country in 2024 and 2025. NND is up about 12% this year, yet they have slipped roughly 3% over the past month. The gap with the rest of the chip...
Author  Cryptopolitan
Jun 23, Tue
Nvidia (NASDAQ: NVDA) stock is still green for 2026, but the trade no longer looks clean from the company that outperformed every other company and country in 2024 and 2025. NND is up about 12% this year, yet they have slipped roughly 3% over the past month. The gap with the rest of the chip...
placeholder
OpenAI Could Reportedly Delay IPO After SpaceX ScareOpenAI executives are reportedly urging caution on its IPO timeline after SpaceX’s turbulent public debut, highlighting risks in mega-AI listings.The development comes as Polymarket traders price roug
Author  Beincrypto
Jun 26, Fri
OpenAI executives are reportedly urging caution on its IPO timeline after SpaceX’s turbulent public debut, highlighting risks in mega-AI listings.The development comes as Polymarket traders price roug
placeholder
Who Actually Pays When MicroStrategy’s $64 Billion Bitcoin Bet Goes Wrong?MicroStrategy’s $64 billion Bitcoin (BTC) bet has become a stress test for everyone who funded it. BTC now trades below $60,000, and the renamed company, Strategy, sits at a discount to its own holdin
Author  Beincrypto
10 hours ago
MicroStrategy’s $64 billion Bitcoin (BTC) bet has become a stress test for everyone who funded it. BTC now trades below $60,000, and the renamed company, Strategy, sits at a discount to its own holdin
placeholder
SpaceX Stock Heads for Nasdaq 100 – Here’s What to ExpectSpaceX (SPCX) will join the Nasdaq 100 on July 7, just 15 trading days after its initial public offering, setting a record as the fastest index inclusion in the benchmark’s history.The confirmation ca
Author  Beincrypto
10 hours ago
SpaceX (SPCX) will join the Nasdaq 100 on July 7, just 15 trading days after its initial public offering, setting a record as the fastest index inclusion in the benchmark’s history.The confirmation ca
placeholder
Apple cuts five older iPad models from iPadOS 27 supportApple will not roll out iPadOS 27 to any iPad with an A12 or A12X chip. That leaves five models out in the cold for the company's next tablet OS.
Author  Cryptopolitan
10 hours ago
Apple will not roll out iPadOS 27 to any iPad with an A12 or A12X chip. That leaves five models out in the cold for the company's next tablet OS.
goTop
quote