News Room


© Shutterstock

HSBC has projected an upward trend for the US dollar (USD) against the Euro (EUR) and British Pound (GBP), as reported on Thursday. This forecast is driven by factors such as “US exceptionalism”, potential government shutdown, autoworker strikes, a temporary dip in USD strength, and high yields. The unique balance of growth and inflation in the US bolsters this trend.

Despite potential rate hikes by the European Central Bank (ECB) and the Bank of England (BoE), sluggish economic growth in the Eurozone and UK may not be enough to strengthen the EUR and GBP. This comes at a time when the USD valuation is historically high, following a 6% surge in the (DXY) since mid-July 2023.

HSBC also anticipates selective gains for currencies such as the Chinese Yuan (WY), Swiss Franc (CHF), and Canadian Dollar (CAD) against the resilient USD. However, these predictions are subject to various global market conditions and economic indicators.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *