TD Securities strategists anticipate a modest strengthening of the US Dollar in the third quarter of 2026, as there remains room for market positioning to rebuild, according to FX Street.

This forecast suggests a gradual improvement in the greenback’s performance after a period of relative stability, driven by underlying shifts in investor sentiment and positioning.

For Japanese investors, monitoring US Dollar movements is crucial given the impact on currency pairs such as USD/JPY and implications for cross-border trade and investment flows.