Home Forex Dollar strength could continue into early 2023 – Wells Fargo

Dollar strength could continue into early 2023 – Wells Fargo

by SuperiorInvest

According to analysts at Wells Fargo, the strength of the US dollar could last longer than initially estimated after events this week that include rate hikes by multiple central banks and a decline in stock markets.

Key quotes:

“The lessons from this week’s central bank bonanza are clear to us. With the FOMC becoming even more hawkish and combined with foreign central banks unlikely to be able to keep pace with the Fed, the US dollar should continue to strengthen. Right now, we forecast broad dollar strength against most G10 and emerging market currencies by the end of this year.

“We now believe the risks to our dollar view are tilted to the upside. Given the Fed’s hawkish outlook on interest rates, the dollar’s strength could persist into early 2023. The dollar’s relentless rise should be most resilient against emerging market currencies, but risk-sensitive currencies such as the Australian and New Zealand dollars could also experience a renewed decline .”

“Going into this week, we believed the US dollar would continue to strengthen through the end of the year. Following this week’s events, we have strengthened our belief in this view and now believe that the dollar’s strength could continue into early 2023.

Source Link

Related Posts

%d bloggers like this: