The US Dollar (USD) continues to be viewed as overvalued against its major currency counterparts, according to Société Générale. Despite significant gains by various currencies this year, purchasing power parity assessments indicate the USD lacks substantial upside potential. In particular, the Euro (EUR) faces limited gains, while the British Pound (GBP) and Australian Dollar (AUD) exhibit increasing downside risks, especially in the GBP/AUD pair as rate support weakens heading into 2026.
As traders navigate this complex landscape, the exchange rates reflect shifting dynamics that could impact future trading strategies. The sustained overvaluation of the USD could lead to adjustments in investment flows and currency pair valuations. Investors will need to monitor these trends closely, as the evolving economic conditions might reshape strategies surrounding the USD, EUR, and GBP/AUD pairs in the coming months.
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Data Source: FX Killer Analysis Team Updated: 2025-12-30 14:46
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.