The seasonal bias favoring the US dollar has not yet manifested itself in 2023, as economists at the MUFG Bank.
The balance of risks for the dollar is changing
“Momentum is turning more positive for the USD, especially against the GBP and then the EUR.”
“It may not take long from here for investors to start considering the risk of the US terminal rate ending up above the current FOMC level (5.00%-5.25%) and any disappointment tomorrow after months of good news “Inflation could trigger a wild move in rates and a new rebound in the dollar. That seems the biggest risk behind the jobs report.”
“Don’t forget the seasonal bias that favors the dollar at this time of year either: January and February is one of the two best periods for the dollar all year and we haven’t seen much of that since the beginning of the year.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
