EUR/USD is below parity and USD/JPY is above 140. Economists at ANZ Bank expect EUR/USD and USD/JPY to move towards 0.97 and 142, respectively.

DXY to reach 112 by early 2023

“Our new global forecasts have the euro slipping below parity to 0.97, the yen weakening to 142, and the sterling to 1.14. These downgrades (upgrades for the USD) recognise that the USD is likely to remain the currency of choice as Europe tackles rampant inflation amid slumping confidence and a war on its doorstep, Japan doubles down on its long-held strategy of ultra-easy monetary policy, and the UK struggles under the weight of surging energy prices and political uncertainty.”

“We forecast the USD DXY to reach 112 by early 2023.”