Standard Chartered see the US dollar picking up more momentum towards the end of the year.
Standard Chartered currency analysts say they see the euro dollar exchange rate maintaining current trading ranges in the next three months. The spot rate is at 1.42.
However the euro dollar exchange rate is expected to deteriorate in the Standard Chartered 3 month to 12 month forecast bracket.
"EUR to correct lower in Q3 on rising US yields, ECB maintaining tightening stance balanced by sovereign debt concern," say Standard Chartered.
The pound dollar exchange rate is also expected to follow a similar pattern.
The forecast for GBP USD is neutral for now (3 month outlook). However the situation is expected to deteriorate as fiscal tightening is expected to reduce rate expectations for the second half of 2011.
