United States Dollar: Supported into year-end before later softening – National Bank

National Bank strategists Stéfane Marion and Kyle Dahms note that the Dollar remains underpinned by persistent U.S. inflation and expectations of further Federal Reserve tightening. They highlight safe-haven demand on weaker global risk appetite and see midterm elections as a medium-term headwind. The Dollar is expected to stay supported through year-end before gradually weakening in 2025 as relative-rate support peaks.

Fed tightening and politics shape outlook

"The U.S. dollar remains supported by persistent inflation and the prospect of further Fed tightening."

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

"Following October’s pause, another firm CPI report reinforces our expectation for tighter policy before year-end, while a deterioration in global risk appetite could provide further support through safe-haven demand."

"We expect the dollar to remain supported through year-end before weakening gradually in ൭൫൭൲ as relative-rate support peaks."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)