USD to be the weakest of the G10 currencies in 2023 – SocGen
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The US Dollar Index (DXY) has retraced 40% of the up-move since spring 2021, and economists at Société Générale expect more.
“We expect the Dollar to be the weakest of the G10 currencies in 2023, though it won’t fall in a straight line.”
“The Fed is closer to the end of its rate-hiking cycle than most. If taming inflation triggers a harder economic landing than expected, that will happen later rather than sooner. For now, a soft landing isn’t good for the Dollar.”
“A backdrop of soft economic landings, monetary policy pivots and a correction in energy prices (which have been very dollar-supportive) suggests the Dollar Index will reverse most if not all the gains it saw between January and September 2022, taking it back below 100.”
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