US Dollar Price Forecast: Dollar Strengthens as Fed-BoE Policy Divergence Widens; Key Levels for EUR/USD and GBP/USD

US Dollar Price Forecast: Dollar Strengthens as Fed-BoE Policy Divergence Widens; Key Levels for EUR/USD and GBP/USD

Source: EODHD - https://finance.yahoo.com/markets/currencies/articles/us-dollar-price-forecast-dollar-081747889.html
Published: Sep 17, 2026 4:17 AM

Dollar Index Outlook: Hawkish Fed Lifts Dollar as EUR and GBP Face Diverging Rate Paths The U.S. dollar is currently benefiting from various bullish fundamentals following Wednesday's Fed Meeting. The Fed raised the target range for the fed funds rate by 25 basis points to the 3.75% – 4.00% range, the first increase since February 2022. The presentation by the FOMC signaled that more increases could be forthcoming, possibly as soon as the end of the year. Current expectations in the markets suggest that the Fed Funds rate will likely end the year above 4.50% to 5.00%, which will help strengthen the U.S. dollar. The euro is expected to face some headwinds in the short term. Recently released...

Market context: This update is relevant to EUR traders, with EURUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.