USD to remain on a choppy path before weakening in the longer run – HSBC
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Economists at HSBC anticipate two phases to the USD’s decline this year. The USD is going through the “chop” phase now. The second phase is categorised as the “flop” when the broader USD resumes weakening.
“The USD is going through the ‘chop’ phase now, as the market reassesses its view on the Federal Reserve (Fed) and other risks that can temper the recent optimism in markets. Compared to the end of January.”
“Once the Fed actually stops hiking, alongside China’s recovery gaining ground, and perhaps the global economy shows signs of bottoming out, then the next phase to the USD decline should occur – the ‘flop’, which we expect to start in late 1Q/2Q23 and persist into 2024. In the ‘flop’ phase, we also think the behaviour of exchange rates could change and become less USD-centric.”
[/s2If]
Join Our Telegram Group
