JPMorgan's dollar forecast

With the Fed’s path becoming clearer, more cautious estimates are being made for the dollar, whose rise this year seems unstoppable. According to JPMorgan Asset Management, the slowdown in inflation is causing markets to soften Fed interest rate pricing, and this could bring an end to the strong dollar period. Stating that markets now have a clearer picture of the Fed’s path, JP Morgan Asset Management Strategist Kerry Craig said, “The dollar is no longer on the one-way upward trajectory we’ve seen this year. There is room for recovery in currencies like the euro and yen.” Morgan Stanley analysts, including Andrew Sheets, also expect the dollar to peak this quarter and then decline throughout 2023. The Bloomberg Dollar Index, which measures the dollar’s performance against 10 developed country currencies, fell more than 6 percent from its September peaks. The dollar has weakened against all 10 developed country currencies in the last month.