Uk news
Economists at the Bank of America analyze the potential shift from the US Dollar’s (USD) carry advantage to a significant headwind.
Uk news Challenging interval ahead for the USD
The Fed is predicted to be one of many initial G10 central banks to decrease rates, challenging the USD’s carry advantage.
Given the upper starting point of US rates, their potential reduction may significantly narrow the rate differentials with other currencies, diminishing the USD’s attractiveness.
The USD stands as one of essentially the most overvalued currencies within the G10, a factor that may amplify its vulnerability in a rate-cutting ambiance.
Decrease curiosity rates within the US typically increase global risk appetite, a dynamic that historically advantages currencies other than the USD.
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