USD to strengthen through the end of this year and come the end of 2024 – HSBC

The USD has been making a comeback lately, with the US Dollar Index (DXY) gaining more than 5% from the year-to-date lows in mid-July. Economists at HSBC analyze Greenback’s outlook.

The return of a strong USD

The USD has already been making a comeback but we see more upside ahead.

As monetary tightening increasingly takes its toll on the global economy, this should bode well for the counter-cyclical USD.

The convergence of rate cut expectations for the Fed and other major central banks should also bolster the USD.

Against this backdrop, we change our view on the broad USD, now seeing it strengthening through the end of this year and come the end of 2024.