HSBC economists expect the US Dollar (USD) to strengthen modestly over the medium term.
A less aggressive easing path could weaken risk appetite, supporting the USD
Our medium-term expectations remain for modest USD strength, especially against the EUR and GBP. This is based on the continued outperformance of the US economy relative to many of the other G10 economies, and US bond yields remaining higher than those of most other G10 economies.
Furthermore, we do not expect the collective easing of the G10 central banks to live up to the markets' moderate expectations. A less aggressive easing path could weaken risk appetite, which would support the dollar.
Finally, should other G10 central banks adopt a pivotal stance, their currencies are likely to come under downward pressure.
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.
