Despite Divergent Expectations Between the Fed and the Market, the USD is Expected to Extend Its Correction - Commerzbank

EnclaveFX Ltd
Jan 19, 2023

Despite the US Dollar's struggles, Commerzbank economists believe it has not yet reached its peak.

There will be a continuation of the USD correction

“The more notable the economic slowdown becomes, the more the market is therefore likely to feel confirmed in its view that the Fed will eventually waver. In particular disagreement about the size of the next rate, step is already emerging amongst Fed members.”

“I expect that the USD correction will only come to an end if the divergence between Fed and market expectations as regards the development of interest rates in the second half of the year has been resolved.”


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