BNY Mellon: USD will start weakening

Bank of New York Mellon Corp. says that US dollar will turn down versus EUR and JPY in the coming months as the Fed pares monetary stimulus at a slower pace than the market expects.

The bank expects EUR/USD to test $1.38 in 3 months and $1.45 in a year, while USD/JPY to slide to 93.00 within 5 months.

The specialists say that EUR “still represents the largest alternative reserve currency” to USD and there are no more risks to the single currency’s existence. As for JPY, the analysts don’t expect it to weaken much as Japanese money isn’t pushing overseas.

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