A two-tier USD is possible in the view of economists at Standard Chartered. GBP/USD could see further gains whilst EUR/USD could remain under downward pressure. Key quotes “The Fed confirmed it expects a hot economy and prefers a “chilled” monetary policy, even as longer-term yields rise. In the near-term, this cocktail is likely to temporarily support the USD.” “EURUSD will likely drift below 1.18 as vaccination execution delays keep ECB very dovish. A USD rally is also likely to lead the low-yielding CHF and JPY to rally towards 0.94 and 110, respectively. However, #USD strength is unlikely to dominate entirely over a 1-3 month horizon.” “We expect USD/CAD to continue to slide towards 1.22 and GBPUSD to push towards 1.42 as US economic expansion and vaccinations allow respective central banks to move towards policy normalisation.” “USD/CNH could drift towards 6.40 again in the coming weeks as economic data remains strong.” “RBA and RBNZ remain dovish, but they are unlikely to act to prevent their currencies from pushing towards 0.80 and 0.74, respectively.” “On a longer 6-12m horizon, though, we continue to expect the USD to weaken. Rising inflation is likely to follow today’s rising yields, resulting in an eventual fall in real (netof-inflation) yields, especially relative to other major currencies. This would be bearish for the USD medium-term.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD tumbles to 2021 lows near 1.1810 FX Street 1 year A two-tier USD is possible in the view of economists at Standard Chartered. GBP/USD could see further gains whilst EUR/USD could remain under downward pressure. Key quotes "The Fed confirmed it expects a hot economy and prefers a "chilled" monetary policy, even as longer-term yields rise. In the near-term, this cocktail is likely to temporarily support the USD." "EURUSD will likely drift below 1.18 as vaccination execution delays keep ECB very dovish. A USD rally is also likely to lead the low-yielding CHF and JPY to rally towards 0.94 and 110, respectively. However, #USD strength is unlikely to dominate entirely… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.