untitled design

Fed easing will not be problematic for the Dollar in 2024 – HSBC

HSBC economists do not expect the dollar to be significantly affected by the Fed’s rate cuts planned for 2024.

Moderate USD Strength Ahead

Our view of modest USD strength in 2024 is not based on a predicted calamity, either for the US economy or others. As such, the impact of Fed easing on the USD falls into the realm of uncertainty, rather than that of a USD bullish haven.

If rate cuts occur in parallel with slowing US inflation, US real interest rates are likely to remain positive, which would provide support for the dollar.

Shallow cuts could help the US economy regain momentum and keep the dollar supported.

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular