(Reuters) – Wall Street bank forecasts have begun to be released for 2022 euro/dollar, dollar/yen and benchmark.

This is an outline of their forecasts.

Bank Euro/dollar Dollar/yen U.S. 10-year

Treasury yield

Barclays (LON:) $1.19 115 yen 1.75%

Morgan Stanley (NYSE:) $1.18 118 yen 2.1%

Goldman Sachs (NYSE:) $1.18 111 yen 2.0%

JP Morgan $1.12 114 yen 2.10%

(end-Sept 2022)

Wells Fargo (NYSE:) $1.10-$1.18 110-120 2.00-2.50%

Investment yen

Institute

Amundi $1.14 116 yen 1.80-2.00%

Barclays

Dollar: “We anticipate modest U.S. currency depreciation during the coming year. It reflects our views on a positive backdrop to risk and commodities along with moderate U.S.dollar overvaluation. Risk-off movements are more important than U.S. underperformance. There is also a limited risk of downside from Fed tightenings and aggressive market pricing.

Morgan Stanley

U.S. 10-year yields

Dollar and Euro vs Yen: The U.S. dollar has an up-and down profile. The Fed emphasizes that the maximum employment rate is still a ways off and that any subsequent increases post-liftoff will likely be gradual, despite improved data. This contrasts with central banks that, having been very dovish, have begun to consider normalization plans. As a result, policy divergence becomes more like policy convergence and the U.S. Dollar falls.

Goldman Sachs

Dollar: We believe that the broad dollar will have more downside than benefits over the medium term. However, in order for the currency to appreciate, the structural as well as cyclical drivers must be aligned. This is less likely to happen over the year. Our 12-month forecast was $1.25, but we have now reduced it to $1.18.

JPMorgan (NYSE:)

Dollar: Policy repricing continues amid an ongoing supply-side inflation shock. Some pairs continue to see a pattern of monetary policy divergence. Developments in the U.S. — a more open-minded Fed on inflation and a tight labor market report — are supportive of U.S. dollar longs against the euro and yen.

Amundi:

Dollar: We recognize that the Fed cannot surprise markets with its actions, but we still see the Fed’s failure to disappoint them at this stage. However, the U.S. will remain positive in the following sequence of slower global growth and Fed normalization. dollar.”