According to Wells Fargo analyststhe strength of the US dollar could persist longer than expected after the events of this week, which include rate hikes by many central banks and the fall in stock markets.
Featured Statements:
“The takeaways from this week’s central bank bonanza are clear to us. With the FOMC becoming even more aggressive, along with foreign central banks likely unable to keep up with the Fed, the US dollar should continue to strengthen. At this time, we see broad dollar strength against most G10 and emerging market currencies through the end of this year.”
“We now believe the risks to our dollar view are tilted to further upside. Given the Fed’s hawkish outlook on interest rates, dollar strength could persist into early 2023. The dollar’s relentless rally should be stronger against emerging market currencies, but risk-sensitive currencies such as the Australian and New Zealand dollars could also see further declines.”
“Coming into this week, we believed that the US dollar would continue to strengthen through the end of this year. Following the events of this week, we have increased our conviction in that view, and now believe that dollar strength could continue into early 2023.”
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
