Lombard Odier believes the US dollar will strengthen further
With stronger U.S. economic growth and reduced market concerns about the independence of the Federal Reserve, the outlook for the U.S. dollar has improved, prompting Lombard Odier & Cie to shift from a bearish to a bullish stance on the dollar, reversing its previous negative position. The firm has lowered its euro-to-dollar forecast from $1.14 to $1.09 and raised its dollar-to-Swiss franc forecast from 0.83 Swiss francs to 0.85 Swiss francs, while adjusting its view on the dollar against emerging market currencies to neutral. This marks the latest move by Lombard Odier to further diminish its bearish stance on the dollar; in June, the firm had already upgraded its dollar allocation recommendation from underweight to neutral.
Lombard Odier flips to bullish on the USD, citing stronger U.S. growth and reduced Fed independence concerns; a firmer dollar usually points to sustained high U.S. rates and tighter global dollar liquidity, which pressures risk-asset valuations; crypto as a high-beta risk asset faces a mild headwind — short-term bearish (weak).