Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Factbox-Wall Street forecasts for the U.S. dollar and 10-year Treasury yield in 2022

ForexNov 16, 2021 12:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A street sign, Wall Street, is seen outside New York Stock Exchange (NYSE) in New York City, New York, U.S., January 3, 2019. REUTERS/Shannon Stapleton

NEW YORK (Reuters) - Wall Street banks have started to release their forecasts for the end of 2022 for euro/dollar, dollar/yen, and the benchmark U.S. 10-year Treasury yield.

Here is a summary of their forecasts:

Bank Euro/dollar Dollar/yen U.S. 10-year

Treasury yield

Barclays (LON:BARC) $1.19 115 yen 1.75%

Morgan Stanley (NYSE:MS) $1.18 118 yen 2.1%

Goldman Sachs (NYSE:GS) $1.18 111 yen 2.0%

JP Morgan $1.12 114 yen 2.10%

(end-Sept 2022)

Wells Fargo (NYSE:WFC) $1.10-$1.18 110-120 2.00-2.50%

Investment

Institute

Barclays

Dollar: "We expect modest U.S. dollar depreciation over the coming year, reflecting our views of a positive backdrop for risk and commodities alongside moderate U.S. dollar overvaluation. Upside risks are largely from risk-off moves rather than U.S. outperformance and limited relative to downside risks stemming from aggressive market pricing for tighter Fed policy."

Morgan Stanley

U.S. 10-year yields: "Continued strong growth in 2022, alongside receding but above-target inflation, keeps the Fed patient, yet gradually moving toward rate hikes, and keeps Treasury yields moving higher."

Dollar vs euro and yen: "We see an up-and-down profile for the U.S. dollar. A Fed emphasizing that maximum employment is ways away and that subsequent hikes post-lift-off are likely to be gradual despite improving data is likely to increasingly contrast with other central banks who, having been quite dovish so far, are beginning to discuss normalization plans of their own. Policy divergence increasingly becomes policy convergence, and U.S. dollar turns lower in response."

Goldman Sachs

Dollar: "Although the broad dollar likely has more downside than upside over the medium term, for it to actually depreciate the structural and cyclical drivers need to align, and we are now less sure that will be the case over the coming year... We revised down our 12-month EUR/USD forecast to $1.18 from $1.25 previously."

JPMorgan (NYSE:JPM)

Dollar: "Policy repricing amid the ongoing supply-side inflation shock continues. Monetary policy divergence remains a theme for some pairs. Developments in the U.S. -- a more open-minded Fed on inflation and a tight labor market report—are supportive of U.S. dollar longs against the euro and yen.

Factbox-Wall Street forecasts for the U.S. dollar and 10-year Treasury yield in 2022
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email