Monex's July 2026 FX Forecasts

The DXY index finished June more than 2% stronger, helped by a shift in market focus. War in the Middle East continues to recede as a theme; in its place, growth conditions, fiscal risks, and especially monetary policy, have returned as primary FX drivers. For the time being, that mix has proven to be dollar-positive, pushing the DXY to its strongest levels since May 2025. But looking ahead, we see building headwinds, with increasing odds that recent dollar highs might prove to be a peak for the buck as we head into the second half of the year.

Read our July 2026 FX Forecasts here:

Authors:

Nick Rees, Head of Macro Research

Barry van der Laan, Senior FX Market Strategist

Disclaimer

This information has been prepared by Monex International Markets plc, part of Monex S.A.P.I. de C.V. (“Monex”). The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. All entities in the “Monex” group of companies are regulated for different products and services within the jurisdictions in which they operate. Details of the different entities can be found here. Details of the respective entities’ regulated status and available products and services can then be found on the relevant links to the individual jurisdictions’ website.