Citi: U.S. Dollar to Rebound in 2026 - Pound Sterling Live

What the desk is arguing

Citi has outlined a bullish forecast for the U.S. Dollar, predicting a rebound in 2026. This scenario hinges on a variety of macroeconomic factors, including anticipated changes in U.S. monetary policy and global economic shifts that could favor dollar-denominated assets.

Furthermore, Citi's insight implies a rejection of the prevailing bearish sentiment that has characterized discussions around the dollar in recent times. The bank's thesis suggests that upcoming economic developments could lead to renewed demand for the U.S. Dollar.

Where it sits in our coverage

Currently, our consensus target for the U.S. Dollar stands at 1.075. This aligns with Citi's outlook, indicating potential for a recovery phase that could push the dollar higher, diverging from the more pessimistic projections held by some peers.

Looking at specific firm targets, we see differing views on the dollar's trajectory:

• Goldman Sachs: 1.08 (Dec-26)
• Barclays: 1.07 (Dec-26)
• JPMorgan: 1.10 (Dec-26)

How other firms see it

The outlook from Barclays seems to be somewhat aligned with Citi's forecast, supporting a gradual recovery for the U.S. Dollar. Meanwhile, firms like BofA take a contrary stance, emphasizing concerns that could suppress the dollar's strength moving forward.

• aligned:
• Barclays
• JPMorgan

• contrary:
• BofA