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HFM’s Outlook 2023: USA and the USD Index


The USA and the US Dollar – 2023 Outlook

2022 was a volatile and unpredictable year for the global economic system. The global currency markets were put under tremendous pressure. They experienced wild swings that reached unprecedented heights. It was a challenging year for global stocks and bonds, so we wish them well.

2023 will focus on the same factors that drove markets through 2022, including monetary policy decisions, concomitant inflation, and recession dynamics. The expectation is that the major central banks will increase their rates in the new year. And the heavy data calendars will feed into policymakers’ decisions on the rate trajectories.

The US Dollar has been undoubtedly the main beneficiary of all the turmoil. It proved how resilient it can act as a safe-haven during times of economic uncertainty. With the US Dollar index hitting a 20-year high against a basket major currencies, it reached a 20 year high. Although the global economic climate is likely to change in 2023 the Greenback will continue its bullish momentum, according to pundits. It will also remain strong against its rivals.

The US Dollar’s performance in the last year is an important indicator.

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