With the Fed about to miss market expectations for the top federal funds rate, and attention turned to policy tightening in other advanced economies, CIBC Capital Markets economists they expect the USD to weaken in 2023.
USD drop in 2023
“We see a modest rise in the dollar on possible data surprises that could tilt market prices in favor of Fed rate hikes at the margin. However, we would put that aside, as the upcoming “tightening” to 25 basis points of gains has been telegraphed by the market for now.”
“The dollar should remain under pressure in the coming quarters, as the prolonged confrontation over the debt ceiling causes the dollar valuation premium to increase.”
“Add to this a much better backdrop outside of North America, and this year is shaping up to be tough for USD bulls.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
