- Analytics
- News and Tools
- Market News
- USD to weaken further over the longer term – HSBC
USD to weaken further over the longer term – HSBC
Recently released US activity data was stronger than expected. But HSBC’s conviction remains the same, the broader USD is seen weakening in the longer run.
Markets continue to debate how best to respond to US data
“Markets are currently debating what the recent run of better-than-expected US data means for risk sentiment: The ‘risk off’ and USD bullish angle is that a strong US labour market is supporting consumption, keeping inflation levels elevated , which will force the Fed to act more aggressively than what the rate market has priced in. The ‘risk on’ and USD bearish angle is that both inflation and wages growth are decelerating in the US, ensuring the Fed’s tightening is nearly done without needing to induce a US recession. This also helps to allay concerns of a weaker global growth backdrop and subsequent hard landing.”
“We believe this debate will continue over the near term, meaning that the USD is likely to remain choppy. We also expect further deceleration in inflation and measured increases in the unemployment rate to decisively favour the ‘risk on’ narrative and USD weakness, as the year progresses.”
© 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
