Global FX: Divergent Central Bank Paths and Oil - Wells Fargo Insights

Wells Fargo's updated forecasts, including a <strong>raised global GDP to 2.7% for 2026</strong> and <strong>trimmed global CPI to 4...%</strong>, highlight increasing central bank divergence. This dynamic fuels USD strength against EUR and JPY due to yield differentials, while GBP faces a more complex path. Technical patterns suggest continued USD momentum. The carry trade remains dominant, with economic data and oil prices crucial for future FX movements.