US Dollar Price Forecast: Hawkish Fed Supports DXY as EUR and GBP Struggle

US Dollar Price Forecast: Hawkish Fed Supports DXY as EUR and GBP Struggle

Source: EODHD - https://finance.yahoo.com/markets/currencies/articles/us-dollar-price-forecast-hawkish-081536540.html
Published: Sep 21, 2026 4:15 AM

Dollar Index Outlook: Hawkish Fed Supports Dollar as EUR and GBP Face Softer Policy Paths The U.S. dollar is expected to appreciate in the near-term due to expectations the Federal Reserve will implement a series of interest rate increases in the near-to-medium term. The Fed raised its benchmark rate by 0.75 percentage points last week and removed pledge to defend 2% inflation, thus signaling further rate increases were possible. Investors also expect other central banks will also implement tighter monetary policies. The Eurozone and the U.K. are expected to implement more dovish monetary policies. Lower energy prices reduce inflationary pressures and support the U.S. dollar. However, other...

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.