US Dollar likely to stay strong in the months ahead – HSBC

The US Dollar (USD) is likely to remain strong in the months ahead, according to economists at HSBC.

Not run out of gas yet

The US Dollar will not be strengthening against most other currencies like it did when the Fed was in a rapid hiking cycle, but it has not run out of gas yet. 

We expect the USD to outperform the Euro (EUR) and the Pound Sterling (GBP), but to underperform the Japanese Yen (JPY) and some commodity currencies, like the Canadian Dollar (CAD) and the Australian Dollar (AUD).