USD to remain supported by a hawkish Fed and a safe-haven bid in Q4 – CIBC
|Economists at CIBC Capital Markets have been USD bulls for a few quarters now. They see little reason to deviate at this point.
USD dominance to fade next year
“We still see a sufficient degree of uncertainty with respect to where the Fed terminal is priced to keep the greenback supported on dips against other major developed market currencies.”
“A weaker backdrop for global demand should continue to buttress the USD via the safe-haven channel. That should show up against the commodity and select EM currency blocs that have been relatively sheltered against hitherto USD strength compared to the funders (like the EUR, and JPY).”
“Next year, we expect market narratives to shift towards an ex-US recovery. But that’s a story for another time.”
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.