The USD strength may come over the remainder of 2022 that might extend up to 2023- as reported by analysts on Wells Fargo. The main reason behind such a movement will come from the further tightening of monetary policies.
“Slower global growth underpins our view for a stronger U.S. dollar over the second half of this year and into 2023. In our view, declining growth prospects should attract capital flows to dollar-denominated assets, given the dollar’s safe-haven qualities. But, perhaps more inspiring for the dollar’s prospects is a hawkish Federal Reserve and the outlook for tighter Fed monetary policy.”
What Does It Mean For Investors?
Any research from analysts indicates a market sentiment that investors should include to define the market outlook. However, the forex market does not pay heed to others as it moves with a pure supply-demand concept.
In that case, following a profitable trading strategy is important besides following others, thoughts.