According to BlockBeats, strategists at Lombard Odier anticipate a weakening of the U.S. dollar over the next 12 months. In a recent research report, they suggest that while some consolidation may occur, a significant recovery seems unlikely. Investors are gradually shifting from U.S. assets to those in Europe and Japan, posing a downside risk to the dollar, although its recent poor performance appears to be continuing.
The strategists note that the slowing U.S. economic growth and potential unexpected growth in other regions by 2026 will contribute to the dollar's decline, with the euro/dollar exchange rate expected to rise. They estimate the fair value of the euro/dollar at approximately 1.15, but advise considering a broader range of 1.15-1.20 due to increased forex volatility and geopolitical uncertainties.