GBPUSD: The dollar's grip on FX will weaken in 2024, poll shows
Updated
The US dollar's influence on the foreign exchange market is likely to weaken in 2024, especially in the second half of the year, according to a study by Currency Strategists. The survey, which included the views of 71 analysts, found that expected U.S. Federal Reserve interest rate cuts next year could lead to a weaker dollar against G-10 currencies. other.
The dollar, which has been a mainstay in foreign exchange markets since mid-2021, showed signs of weakness last week following dovish comments from some US Federal Reserve officials. This change in tone caused the dollar index to fall 3.0% in November, its biggest monthly decline in a year. The strength of the US economy is the main reason for the dollar's strength, with last quarter's annualized growth of 5.2%, the highest level since the final quarter of 2021. But analysts expect the dollar's weakening trend to continue next year, with most of the decline occurring by the end of 2024.
Lee Hardman, senior currency strategist at MUFG, commented on the outlook: Challenges in global economic growth outside the United States are reasons to be cautious in predicting an immediate decline in the dollar.
The dollar is expected to maintain some resilience in the first half of 2024, but strategists cannot agree on the factors that will determine its performance. Among the analysts, 20 cited interest rate differentials as potential factors, 17 cited economic indicators, seven cited demand for safe assets, and three cited other reasons.
The dollar, which has been a mainstay in foreign exchange markets since mid-2021, showed signs of weakness last week following dovish comments from some US Federal Reserve officials. This change in tone caused the dollar index to fall 3.0% in November, its biggest monthly decline in a year. The strength of the US economy is the main reason for the dollar's strength, with last quarter's annualized growth of 5.2%, the highest level since the final quarter of 2021. But analysts expect the dollar's weakening trend to continue next year, with most of the decline occurring by the end of 2024.
Lee Hardman, senior currency strategist at MUFG, commented on the outlook: Challenges in global economic growth outside the United States are reasons to be cautious in predicting an immediate decline in the dollar.
The dollar is expected to maintain some resilience in the first half of 2024, but strategists cannot agree on the factors that will determine its performance. Among the analysts, 20 cited interest rate differentials as potential factors, 17 cited economic indicators, seven cited demand for safe assets, and three cited other reasons.
Note
💵GBPUSD SELL 1.2550- 1.2560💵✅TP: 1.2520
❌SL: 1.2600
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