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Market news

17 August 2021

USD to grind higher on a surge in risk aversion and more rapid tightening by the Fed – HSBC

FXStreet reports that economists at HSBC discuss US dollar  prospects.

“There are signs that global growth has peaked and is losing some momentum. If we expected the USD to temporarily weaken this year against a still recovering global economy, then the opposite should also hold true.”

“Fed’s plan to taper and its divergent monetary policy stance from other central banks should eventually guide the USD stronger, especially once tapering actually starts.”

“We believe that the slowing global growth and the Fed moving gradually towards monetary policy normalisation should see the USD grinding higher versus most major currencies through the rest of 2021 and into 2022.”

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.