USD has much room to fall through H2 and even through most of 2024 – TDS
|The downside miss in US CPI has sent the USD reeling. Economists at TD Securities analyze Greenback’s outlook.
The turn is likely to extend into H2 and through next year
The USD is in steep free fall in the wake of the latest "positive" inflation report. We have been advocating USD shorts since the positioning-induced rally in May and think the recent price action is just the start of a broader bearish turn in H2.
We assess some medium term drivers like global growth and yield curve dynamics, front-end rate momentum and relative central bank policy, and volatility and valuation mechanics. The bulk of these drivers lean against the USD, underpinning our updated outlook that the USD has much room to fall through H2 and even through most of 2024.
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.