The appreciation of the trade-weighted US Dollar Index (DXY) has stalled over the past month. Economists at the National Bank of Canada analyze USD outlook.
A soft landing for the US economy would imply a weaker USD going forward
If you believe, as the Fed does, that a soft landing for the economy is on the horizon, this scenario would imply a weaker USD going forward. This is not our forecast.
In our view, the US Dollar is likely to strengthen on fears of a global recession and renewed geopolitical tensions in the Middle East, which will drive safe-haven demand until the Fed is able to pivot and announce an easing of monetary policy.
USD likely to strengthen on global recession fears and renewed geopolitical tensions in the Middle East – NBF appeared first at: Source