A note from HSBC on the US dollar, analysts at the firm note its strength, helped along by the Fed’s “rapid hiking cycle”. HSBC sees the dollar strength to slow, but persist, it “has not run out of gas yet”.
The analysts project a mixed performance ahead:
- expect the dollar to gain vs EUR
- expect the dollar to gain vs GBP
- but to underperform vs. JPY and some of the commodity currencies, in particular AUD and CAD
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Here’s the dollar index, DXY. Looks stuck in the middle to me, Viewed in that context HSBC’s view of a mixed performance ahead makes sense.