Helena Lyng Blak
10 weeks ago

Challenging times ahead for the US dollar?

Despite performing better than expected, tides may be changing, says financial analyst.
US 100 Dollar banknote down the street storm drain.
Artem Avetisyan / Shutterstock.com

2024 has seen the US dollar performing better than expected, thanks to a strong US economy and inflation data that had exceeded expectations.

However, uncertainties loom, according to financial analyst for Steno Research Oskar Vårdal.

“The USD looks to have broken the clear downtrend from Q3/Q4 last year,” he says. “But the combination of rising inflation expectations and potential cuts from the Fed allows USD real-rates to diminish compared to peers.”

Vårdal highlights that US Secretary of Treasury Janet Yellen recently said she was wrong to think inflation was temporary, indicating that US and Fed officials may have been too optimistic about inflation decreasing last year.

“While markets have hawked up rates expectations for both June and December, the idea that the Fed would even cut rates at all with inflation expectations on the rise leaves an interesting outlook for both the USD and US rates, as the Fed will possibly allow for real rates to diminish even further - also compared to peers.”


The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

5 hours ago Israeli Airstrike Hits Rafah Tent Camp Israeli airstrike on Rafah camp kills dozens, raising international alarm.
5 hours ago Meta and Call of Duty Maker Sued by Families of School Shooting Victims Families of the 2022 Uvalde school shooting victims file lawsuits against major corporations and officials, claiming they contributed to the tragedy.
7 hours ago Walmart and Capital One Call It Quits on Partnership Walmart and Capital One announce the end of their six-year card partnership amidst legal disputes.
7 hours ago US Market Open - May 27, 2024: Wall Street Wavers but Nasdaq Soars Daily update from the US market open.
10 hours ago Crypto, Currently: May 27, 2024 - Ethereum Leads Weekly Surge, Bitcoin Holds Steady Daily update on Ethereum, Bitcoin, and more!
1 day ago Debunking the headline: US GDP grows by a third ahead of EU in 15 years Europeans need not worry as much as these articles would suggest.
1 day ago Empowering Women Could Boost Economic Growth, Says IMF Economists Discover how gender equality initiatives could transform economies in Japan and Korea.