The dollar sell-off has paused. The ING economists remain bullish on the dollar in early 2023.
What to see in the markets during the festive period
“The US calendar includes personal income, PCE and durable goods orders for November (on December 23), as well as the Dallas and Richmond Fed manufacturing indices for December 27 and 28. For now, there are no speeches scheduled from the Fed until the release of its Minutes on January 4. We doubt the data will be capable of rocking markets in the low volatility environment of the holiday period.”
“In China, a growing number of unofficial reports suggest that the actual number of fatalities may be considerably higher than reported: if this were to be supported by more evidence, markets could increasingly doubt the sustainability of the China’s path of exit from its zero covid policy, with negative implications for the yuan, emerging Asian markets and high beta currencies.”
“On the energy side, possible retaliation by Russia to the EU cap on gas prices, a possible resurgence of the conflict in Ukraine and weather-related news may have an impact on the foreign exchange market. European currencies still look quite vulnerable from this point of view.”
“We think the DXY could end the year around current levels. It’s worth remembering that the dollar has risen in January in each of the last four years. Our view for early 2023 remains for a USD recovery.”
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.
