US dollar to peak in the first half of 2023 – ANZ
|The strength of the US dollar has seen most other G10 currencies reach historic lows in recent months. In the view of economists at ANZ Bank, the pace and speed of tightening monetary policy among major central banks are biased towards US dollar dominance in 2022 and the first half 2023.
DXY will likely peak at 115 in the first half of 2023
“In the near-term, with real yields deeply negative, we see little prospect for any immediate relief from USD strength. On this basis, we expect to see the USD overshoot from fair value in response to monetary policy tightening.”
“The US dollar will continue to attract safe haven bids as we expect global recessionary fears to deepen in the coming months. In line with our stronger US dollar view, the US Dollar Index (DXY) will likely peak at 115 in the first half of 2023.”
“We have revised our forecasts for major currencies to bottom out vs the US Dollar in the first half of 2023, as follows: AUD (0.64), NZD (0.57), EUR (0.95), GBP (1.10) and JPY (150).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.