The strength of the dollar has been a constant in the last two years. However, HSBC economists They point out that the main tailwind for the dollar is moderating rapidly.
Revaluation of the euro and the pound sterling to a neutral opinion
“The USD benefited from Fed leadership in pacing monetary policy tightening and an attractive rate hike compared to many other G10 currencies. rates, we think those rate differentials are unlikely to widen further, and the gap could even narrow with some countries. As a result, the main tailwind for the USD is fading fast.”
“However, the USD will continue to receive some support from weakening global economic growth, relative economic resilience in the US and mixed to weak risk appetite.”
“We recently cut USD to neutral; upgraded EUR and GBP to neutral; and JPY and SGD to bullish.”
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.
