Modest USD weakness for the rest of the year – HSBC

Despite sizeable swings, the USD is not far from the level at which it started in 2023. Economists at HSBC analyze Greenback’s outlook.

Time is running out for the USD to be trendy in 2023

Recent data suggests that a soft landing is the most likely outcome for the US and global economy. This would point to a ‘risk on’ mood and consequently a weaker USD into year-end and early 2024, which is our base case.

But if the US either heads to a hard landing or economically outperforms other G10 economies, the USD will strengthen – not our base case.