CNY - Invesco's Kristina Hooper says the US dollar will continue to weaken
2023-07-19 09:57:09 ET
Invesco global market strategist Kristina Hooper anticipates that the U.S. dollar ( DXY ) will continue to weaken, as more signals point to a Federal Reserve dovishness relative to other central banks around the world.
"The recent drop in the US dollar largely reflects an expected end to Federal Reserve tightening as well as improving growth expectations," Hooper stated in a recent Invesco report on Wednesday. "Other currencies are strengthening because other economies' central banks have further to go in terms of tightening."
The DXY has lost ground since the latest non-farm payroll report . Last Wednesday's CPI report has pushed the sell-off even further.
Prior to the jobs report, the dollar index hovered right near the 103 level. Recently, following the employment statistics and the consumer inflation numbers, the DXY slumped to 99.58 before stabilizing. As of Wednesday morning, the DXY has regained some of its recent losses as it now sits at 100.17.
"I anticipate the US dollar will continue to weaken as more signs point to Fed dovishness relative to other central banks, especially the Bank of England and, to a lesser extent, the ECB," Hooper stated.
Investors looking to monitor the strength of the dollar may look to further analyze a group of currency pairs along with a couple of currency-based exchange traded funds. See a grouping of the two below.
Currency Pairs: ( EUR:USD ), ( GBP:USD ), ( USD:JPY ), ( USD:CHF ), ( AUD:USD ), ( NZD:USD ), ( USD:CAD ), and ( USD:CNY ).
Currency ETFs:
- Invesco DB USD Bullish ETF ( NYSEARCA: UUP )
- WisdomTree Bloomberg U.S. Dollar Bullish Fund ( NYSEARCA: USDU )
- Invesco DB US Dollar Index Bearish Fund ( NYSEARCA: UDN )
More on Markets:
- Apollo: Elevated levels of inflation will keep the cost of capital high well into 2024
- BofA’ global fund manager survey shows an overall bearish view
- Jefferies analysts see 'dark clouds on the horizon' for U.S. economy
For further details see:
Invesco’s Kristina Hooper says the US dollar will continue to weaken