- Analytics
- News and Tools
- Market News
- USD has already embarked on a prolonged period of depreciation – Wells Fargo
USD has already embarked on a prolonged period of depreciation – Wells Fargo
The greenback has already embarked on a prolonged period of depreciation that could last into 2024, warn analysts at Wells Fargo. They point out that the relative economic growth performance, and monetary policy outlook have turned less supportive of the US dollar.
No longer forecasting USD strength early this year
“The U.S. dollar has embarked upon a prolonged period of depreciation. Relative growth and monetary policy fundamentals have become less supportive of the greenback. We expect U.S. dollar depreciation to be gradual in early 2023 as the U.S. falls into recession during the second half of this year, but the Federal Reserve hesitates from lowering interest rates prematurely.”
“We expect the U.S. dollar's depreciation to gather pace in 2024 since, even as the U.S. economy begins stabilizing, we believe the Fed will start cutting interest rates quite aggressively starting early next year. From current levels, we forecast the Fed's trade-weighted dollar index versus advanced foreign economies to soften 3% by the end of 2023, and by a cumulative 8.5% by the end of 2024.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
