- Analytics
- News and Tools
- Market News
- Some room for a stronger USD through the end of March – CIBC
Some room for a stronger USD through the end of March – CIBC
The Federal Reserve (Fed) is priced to start easing a month too soon. Therefore, economists at CIBC Capital Markets expect the US Dollar (USD) to remain strong in the near term.
USD to gradually depreciate through the end of 2024
We’re still resolute in our call for one last round of USD strength before this quarter is out. That’s largely because there’s enough evidence now that the US economy has adapted to higher rates far better than most have expected, and we still don’t think markets are paying full tribute yet to this theme.
Markets have recalibrated and are now pricing in decent odds of that first cut coming at the June meeting. That’s still a bit before when we expect the Fed will ease (July), and further recalibration there are in keeping with our call for a firmer USD in the near term.
Beyond March, we have the USD profile trending lower as the economic outlook outside of North America improves. Additionally, longer-term valuations still look very unfavourable for the USD. Market participants outside of the US should look to take advantage of the higher USD in the coming months and lock in longer-term hedges while the getting is good.
© 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
