Reuters Poll: Bearish Dollar Expectations Unchanged, but Near-Term Strength Risks Rise

Odaily: Although the U.S. dollar has recently continued to outperform market expectations, foreign exchange strategists are still maintaining their forecast that the dollar will weaken over the next year. However, as the U.S. midterm elections approach, a growing number of analysts are beginning to warn that the dollar may remain strong for an extended period.

The latest foreign exchange poll released by Reuters on Tuesday shows that the overall forecasts of surveyed strategists for the dollar are almost unchanged compared with early October, but they generally believe that the risk of the dollar's actual performance being stronger than predicted is rising.

This divergence reflects the complex situation currently facing the foreign exchange market: the resilience of U.S. economic growth and inflation makes it difficult for the Federal Reserve to quickly shift toward easing, while geopolitical risks and capital flows continue to affect the dollar's trajectory.