Poll: USD will weaken in 2023
A Reuter's poll suggests the dollar's grip on FX markets will loosen this year. In 2022 the greenback scored its best annual performance since 2015, rising against almost every currency.
(Video Transcript)
USD on the way down?
A Reuters poll out on this Friday suggests that the dollar could lose its grip on the financial markets, a grip that it held for pretty much all of 2022.
Dollar basket
Let's take a look, first of all, at what's happening with the dollar basket. The dollar had its best performance since 2015, rising against almost every other single currency.
This year could be different, according to the poll, as a majority of forex strategists expect most major and emerging market currencies to post marginal gains against the greenback over the coming 12 months. The dollar basket between those two lines, you can see that for the year's performance overall.
EUR/USD
In terms of the main trade, the euro/dollar, that's just down nearly 13% last year. Currency strategists surveyed expect the pair only to recoup around a third of those losses that we've saw over the last year.
USD/JPY
So far as the Japanese yen is concerned, that to some degree had a different story of its own but were really big gains for the dollar, against the Japanese yen, losing as much as a fifth of its value over all the yen against the greenback.
The Bank of Japan's surprise tweak to its bond yield curve control sent the yen on the other way, but the yen ended the year 12% lower against the dollar. It's expected to gain around 4% by the end of 2023, according to this poll released by Reuters.
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