To Infinity and Beyond
Lead — The desk interprets J.P. Morgan's insights on the expanding space economy and its implications for growth in both technology and defense sectors. According to the report, the space defense market is projected to reach a staggering $250 billion by 2035, driven by nations enhancing their orbital defense strategies. This commentary aligns with our current expectations for USD movements against several currencies following recent macroeconomic trends. Per the full note source, USD valuation remains heavily influenced by factors such as global geopolitical stability and technological advancements in emerging industries.
What the desk is arguing
The desk posits that the burgeoning space economy signifies a major pivot in investment opportunities, especially for the USD as corporate and governmental focus shifts toward high-tech defense and infrastructure projects. Per the full note source, the anticipated growth in the space defense market is generated by strategic imperatives amongst nations exploring space-based solutions.
Further supporting this perspective, the cost structures associated with emerging technologies also play a significant role in shaping future market dynamics. For instance, space-based solar power initiatives are hindered by high launch costs, representing roughly 70% of total expenses. Overcoming these financial barriers could energize the broader market.
Where it sits in our coverage
As noted, our current consensus targets for USD positions suggest a rate of 1.075, with a range between 1.04 and 1.12. Relevant firms include: - jpmorgan: 1.10 (Mar26) - bofa: 1.04 (Mar26)
The desk's current assessment leans toward a stronger dollar through our projection at the upper boundary of the range. This outlook reflects a growing alignment with jpmorgan's target, suggesting confidence in the USD amidst structural shifts in global markets.
How other firms see it
Firms aligned with a bullish USD stance include jpmorgan, which supports the notion of an advancing market based on defense spending and initiatives within the space economy. Contrarily, bofa expresses skepticism regarding these projections, suggesting a more cautious approach toward dollar appreciation.
Observation of related pairs, particularly the USD/EUR trajectory, will be crucial given the Eurozone's response to U.S. technological advancements and defense spending policies, further influencing forex movements in the upcoming periods.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
- 01The space economy is projected to reach substantial values, particularly within defense sectors.
- 02Projected market size for space defense could hit $250 billion by 2035, impacting US dollar valuation.
- 03High launch costs remain a primary hurdle for innovations such as space-based solar power.
- 04Trends in geopolitical stability will heavily influence FX strategies, especially in USD movements.
Market implications
Traders should closely monitor USD/EUR as the USD exhibits strength due to evolving defense spending strategies. A breach above 1.10 could signal a stronger bullish trend.
Risks to this view
If global geopolitical tensions escalate or technological hurdles remain insurmountable for key initiatives, we could see a reversal in the bullish USD stance. Market corrections due to unforeseen regulatory changes in space policies can also shift trends swiftly.
Charting the future of the space economy ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ View online Insights In Context * In light of SpaceX's historic IPO, discover how the space economy is becoming a launchpad for growth. * Explore the factors sustaining U.S. financial dominance in a special issue of Eye on the Market. * Which sectors stand to outperform during the 2026 FIFA World Cup? * How are geopolitical tensions, market volatility and cyber risks reshaping long-term planning for corporate treasurers? Not a subscriber? Sign up for In Context.
RESEARCH What's propelling the space economy? For decades, space activity was largely confined to government-funded satellites and scientific missions. However, the industry is now broadening thanks to new use cases such as defense and space-based solar power.
PREPARE FOR LIFTOFF BY THE NUMBERS As per the World Economic Forum, the space defense market could be worth $250 billion by 2035 as countries seek to build out orbital defense systems. The main headwind for space-based solar power is high launch costs, which account for about 70% of overall expenses. J.P.
Morgan Global Research estimates that the World Cup could generate $910 million in incremental U.S. hotel room revenue PRIVATE BANKING Eye on the Market: Semiquincententacles To mark the 250th anniversary of the Declaration of Independence, Michael Cembalest, chairman of Market and Investment Strategy for J.P. Morgan Asset & Wealth Management, examines the factors underpinning the U.S.'s continued grip on financial markets. READ MORE RESEARCH 2026 FIFA World Cup: Could equity markets score big?
The tournament is poised to generate a surge in consumption, which could result in a windfall for consumer-facing sectors such as accommodation and advertising. GET IN THE GAME INVESTMENT BANKING What are corporate treasurers focusing on? New polling data from treasury leaders across Europe, the U.K. and the Middle East signals how corporate treasurers are recalibrating risk, managing liquidity and building digital roadmaps for the rest of 2026.
FIND OUT MORE jpmorgan.com |Unsubscribe |Privacy Policy |Online Activity Safeguards |Cookies Policy (c) 2026 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A.
Member FDIC. Deposits held in non-U.S. branches are not FDIC insured. ‌ J.P. Morgan Corporate & Investment Bank Marketing, 25 Bank Street, Floor 30, BS30-3000, Canary Wharf, London E14 5JP, United Kingdom.
Important Reminder: JPMorgan Chase will never send emails that require you to send account information or passwords to us via public email or pop‍-‍up windows. Although this transmission and any links/attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by JPMorgan Chase & Co., its affiliates, as applicable, for any loss or damage arising in any way from its use. .
Sources & References
How we cover this story
Primary source
To Infinity and Beyond