Economists at CIBC Capital Markets still see additional scope for investors to add to US Dollar longs into the end of this year.
Higher for longer means the US Dollar gets stronger
The US economy is less vulnerable to ‘higher for longer’ rates.
We expect investors to add to USD longs as the Fed is likely to be less reactive to weaker data relative to other central banks.
DXY – Q4 2023: 108.04 | Q1 2024: 105.65
See: Some USD appreciation until early 2024 – NBF
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