Tag Archives: US dollar appreciation

Macroview While near-term Fed rate hike has been priced in, other factors favour the greenback in the medium term. Alternatives like the Swiss franc and Australian dollar look less attractive. With a December rate hike already largely priced in, further dollar support from Fed tightening could be fairly limited in the next few months, especially as the Fed is likely to lower its rate forecasts for the coming years to take into account increasing concerns about the decline in ‘neutral’ real...

Following the Brexit referendum, prolonged GBP weakness is likely, while the Swiss franc faces renewed upward pressure Greater uncertainties, such as those caused by the Brexit vote, generally favour lower risk appetite. As a result, safe-haven currencies like the US dollar and currencies with positive current accounts and/or positive net international investment positions (JPY and CHF) are expected to outperform. Between the Bank of Japan and the Swiss National Bank, the latter would seem...