US Dollar will come under further pressure in 2023 – UBS
|USD/JPY touched its lowest level in over four months at 130.60. Economists at UBS expect the pair to extend its decline towards 125 as the greenback will remain under pressure.
Tightening outside the US adds to downward pressure on the US Dollar
“We had been expecting the Yen to appreciate modestly against the US currency through next year, with USD/JPY going from 133 at present to around 125 by the end of 2023. The question for markets now will be whether the Bank of Japan will allow yields to rise further when the new governor takes over from Kuroda in April. This could put additional upward pressure on the Yen.”
“We believe that the US Dollar will weaken in 2023, given that the US Federal Reserve is closer to an end of its tightening cycle that other major central banks.”
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.