UBS maintains its forecast for the EUR/SEK exchange rate, arguing that rising global interest rates and expectations of further Fed tightening are neutralizing Sweden's resilient domestic economy and weighing on the krona.
Citigroup predicts the Japanese yen will strengthen against the U.S. dollar through 2027, driven by institutional investors reducing their vast overseas holdings in response to rising domestic interest rates.
The British pound edged higher on Friday, but its advance was limited by a robust U.S. dollar, which continues to draw strength from a global bond market rout and expectations for hawkish Federal Reserve policy.
The Canadian dollar traded near its weakest levels in two months on Friday, as a broadly stronger U.S. dollar, fueled by rising Treasury yields, continued to outweigh support from high energy prices.
The Canadian dollar remained under pressure near a two-month low on Friday, as a rally in the U.S. dollar, driven by rising Treasury yields and hawkish Fed expectations, continues to overshadow support from high oil prices.
The British pound saw a modest advance on Friday, but its gains were limited by a dominant U.S. dollar, which continues to draw strength from a global bond market rout and hawkish Federal Reserve expectations.
Citigroup predicts the Japanese yen will appreciate against the U.S. dollar, citing a significant reduction in overseas investments by Japanese institutions. The bank forecasts the USD/JPY pair could fall to ¥145 by the end of next year.
Analysts at UBS expect the U.S. dollar to remain strong against the Swiss franc, citing the significant interest rate differential following the Swiss National Bank's decision to hold its policy rate.
The benchmark 10-year U.S. Treasury yield climbed for a sixth consecutive week to its highest level since 2007, as resilient economic data and hawkish Federal Reserve commentary deepened a historic bond market rout.
