Barclays projects the US dollar will maintain its strength through 2026, driven by an investment cycle centered on artificial intelligence. The bank highlights that AI-related capital spending is expected to enhance productivity and growth, boosting global demand for American technology and services, which will support the dollar's value.
Additionally, Barclays points to a favorable policy environment, including reduced tariff risks and sustained fiscal support, as factors reinforcing the dollar's long-term strength. The bank's outlook suggests that a robust USD could coincide with positive performance in equities and credit markets, while emerging market currencies and global carry trades may face challenges.
Barclays Forecasts Strong Dollar and Rising Risk Assets Through 2026
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