Dollar Jumps 2.1% as Wall Street Banks Turn Bullish on Fed Outlook
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Dollar Jumps 2.1% as Wall Street Banks Turn Bullish on Fed Outlook Khac Phu Nguyen Fri, June 26, 2026 at 7:49 AM EDT 1 min read DX-Y.NYB JPM BAC GS This article first appeared on GuruFocus . The dollar is gaining fresh momentum as major Wall Street banks turn more bullish on the US currency. Strategists at JPMorgan Chase ( NYSE:JPM ), Bank of America ( NYSE:BAC ), and Goldman Sachs ( NYSE:GS ) have expressed renewed confidence in the greenback after Fed Chairman Kevin Warsh emphasized price stability, a shift that has fueled expectations for possible US rate hikes. Warning! GuruFocus has detected 9 Warning Signs with JPM. Is JPM fairly valued? Test your thesis with our free DCF calculator. The Bloomberg Dollar Spot Index has risen 2.1% so far in June, trading near its highest level since November and up 1.7% this year. JPMorgan's Meera Chandan said the Fed has activated the bullish dollar outlook, as other central banks may not move fast enough to narrow the rate gap with the US. Investors are also pointing to resilient US economic data, AI-driven corporate spending, and continued inflows into US stocks as possible support for the currency. Still, the path may not be smooth. Man Group expects the dollar could rally 5% by year-end, while TD Securities sees a more modest 2% gain in the third quarter. Bank of America lowered its year-end euro forecast to $1.15 from $1.20, expecting the Fed to raise rates three times this year. Goldman Sachs said the dollar could strengthen against lower-yielding and oil-sensitive currencies, while possibly lagging high-carry currencies such as the Mexican peso, Brazilian real, and Australian dollar.
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