US Dollar to peak and then weaken in 2023 – Citi
|Economists at Citi look for an end to the US Dollar’s mighty ascent.
CAD to strengthen once broader USD strength wanes
“We expect the US Dollar rally since 2021 to exhaust itself sometime in 2023 and then to reverse course. This is partly because the Fed is likely to stop raising interest rates more aggressively than other G10 central banks as economic growth slows.”
“Positioning for dollar strength has become a crowded trade as investors seek out “safe haven” assets amid uncertainty. The US has large trade and fiscal deficits that should prompt softening over time.”
“We expect the Canadian Dollar to strengthen once broader US Dollar strength wanes.”
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.