US Dollar to peak and then weaken in 2023 – Citi

FXStreet Insights Team FXStreet

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.”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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