CURRENCY EXCHANGE RATE ASSUMPTIONS
After a broad-based U.S. dollar reversal over the last year, our assumptions point toward significant future weakness
ASSUMPTIONS FOR SELECTED CURRENCY EXCHANGE RATES — NEXT 10–15 YEARS
(According to market convention, CURRENCY A/CURRENCY B means one unit of CURRENCY A is worth the stated number of units of CURRENCY B. EUR/USD = 1.30 means EUR 1.00 is worth USD 1.30.)
Source: Bloomberg, J.P. Morgan Asset Management; estimates as of September 30, 2018.
*For consistency and ease of conversion, we have assumed that the forecast horizon for the per annum change in percentage terms is 12.5 years. Differing from market convention, we have also used a uniform signing convention, such that a positive figure represents a strengthening of the currency vs. the U.S. dollar, and vice versa.
VIEW OTHER ASSUMPTIONSExamine our return projections by major asset class, their building blocks and the thinking behind the numbers.
2019 Long-Term Capital Market Assumptions