USD more likely to consolidate and stay rangebound in early 2024 rather than fall further – UBS

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The US Dollar declined further at the beginning of Thanksgiving week. Economists at UBS analyze Greenback’s outlook.

US Dollar to remain around current levels in the months ahead

We expect the US Dollar to stay stable in the first months of 2024, due to robust US economic growth and high US interest rates relative to the rest of the world.

With a sharp narrowing of yield differentials unlikely over this period, we expect a rangebound US Dollar for the first quarter of 2024 and before the USD resumes its weakening against the Euro, British Pound, Japanese Yen, and Swiss Franc.