US Dollar to weaken after Q1 2023 – MUFG
|The US Dollar weakened further and more substantially in November. After a period of swings back and forth between renewed USD strength and weakness, only later in 2023, will we see a sustained turn weaker for the Dollar, according to economists at MUFG Bank.
A period of some rebound for the Dollar seems likely
“We do not yet see grounds for a sustained weakening of the USD and expect the coming three-to-four months to be a period of swings back and forth as the fundamental driver of Dollar strength becomes less compelling but equally broader financial conditions remain challenging for a sustained retracement of Dollar strength.”
“QT is ongoing, global US Dollar liquidity is shrinking and equity valuations remain stretched, all USD supportive factors.”
“A peak for the US Dollar may have passed but we would expect swings back and forth between renewed Dollar strength and weakness and only later in 2023 will we see a sustained turn weaker for the Dollar.”
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.