Economists at Standard Chartered expect the US Dollar to weaken against the Euro and the Japanese Yen.

Pressure on BoJ to scrap policy unlikely to go away amid rising inflation in Japan

“EUR/USD to rise towards 1.09-1.10, USD/JPY to fall towards 133-134 over the next three months.”

“Unlike the Fed, we do not see the ECB altering its tightening bias for now, given the relatively stronger growth and greater inflation pressure.”

“USD/JPY also has room to reverse its initial disappointment from the BoJ ruling out any immediate change to its Yield Curve Control (YCC) policy. We believe that the pressure on BoJ to scrap policy is unlikely to go away amid rising inflation in Japan.”