- Analytics
- News and Tools
- Market News
- US Dollar to soften over the balance of 2024 versus the core majors – Scotiabank
US Dollar to soften over the balance of 2024 versus the core majors – Scotiabank
The new year has started with the US Dollar (USD) recovering somewhat from its late 2023 sell-off. Economists at Scotiabank analyze Greenback’s outlook.
Narrowing growth and interest rate differentials will combine as a headwind for the USD in 2024
Regardless of the USD’s strong start to the year, we still expect it to soften over the balance of 2024 versus the core majors.
We anticipate the Fed will start relaxing its policy stance in Q3 2024 and we now expect fewer rate cuts (100 bps in total versus 150 bps in our last forecast) this year.
Some (modest) narrowing growth and interest rate differentials will combine as a headwind for the USD in 2024.
In real effective terms, the USD has appreciated significantly (around 28%) over the past ten years. Scope for additional USD gains may be limited in the medium to longer run and its elevated valuation leaves it prone to a correction, particularly as structural headwinds (the US fiscal imbalance) continue to strengthen.
© 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
