The US dollar is continuing to strengthen after the recent election, with the DXY index set for its seventh consecutive weekly gain, up around 6% since early October.
Market analysts believe that the dollar's momentum is being driven by the anticipated protectionist and growth-oriented policies under President-elect Trump. Potential tax cuts could make US investments more attractive to foreign investors, and the possibility of tariffs and rising yields is further boosting the appeal of the dollar. However, there are indications that the dollar's strength may have limits, as uncertainties remain about how Trump's policy agenda will be funded. Rising US bond yields could have a negative impact on the economy through increased mortgage and debt service costs.
Adjusted forecasts now predict that the USDJPY will reach 155, 152, 150, and 147 by September 2025, while the EURUSD is expected to trade within the 1.05-1.12 range. Financial experts recommend using yield-generating strategies to diversify income sources in light of these developments.