- Analytics
- News and Tools
- Market News
- US Dollar Index: Medium-term uptrend likely to persist – Westpac
US Dollar Index: Medium-term uptrend likely to persist – Westpac
The US dollar remains on a sound footing. This trend is set to persist until the Fed’s frontloaded policy tightening cycle is near concluding, according to economists at Westpac.
US to avert recession
“Escalating recession risk will periodically undercut the USD, but the US has a couple of cards up its sleeve, among them $2.5trn in accumulated covid household savings and 40-year highs in the US’ terms of trade. That, and the prospect of increased supply in constrained labour and product markets should see the US avert recession.”
“While the US is contending with supply constraints and excess demand, the eurozone is dealing primarily with supply-side issues and the outlook remains fragile. The US is operating substantially further beyond capacity than the Eurozone. Yet, rates markets expect the Fed-ECB cash spread to reverse materially into 2023.”
“DXY a buy the 104 zone, the medium-term uptrend likely to persist until the Fed’s frontloaded policy tightening cycle is nearer conclusion.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
