Exchange market fundamentals played a big role in movements of currencies during 2014, and will continue to exert a strong influence during 2015. This means that the dollar will strengthen more, because of strong growth prospects and Fed rate hikes (sooner than most other central banks). Having risen by around 8% against major currencies in 2014, IHS expects the greenback to rise another 3–5% in 2015. The anticipated additional stimulus by the ECB and BoJ means that both the euro and the yen will keep depreciating in 2015. IHS predicts that the euro/dollar rate will fall from late-2014 levels of around $1.25 to a range of $1.15–1.20 by autumn 2015. Similarly, the yen is predicted to depreciate from about ¥117 at the end of 2014 to a range of ¥120–125 during 2015. As in the case of the US dollar, early hikes by the Bank of England and Bank of Canada will put upward pressure on sterling and the Canadian dollar, although in the case of the latter, weak oil prices will exert countervailing downward pressures.

Source: https://www.ihs.com/