TD Securities is expecting the US dollar to weaken in Q2 and Q3 of 2024, and risk trades to strengthen. Analyss at the bank cite:
- Its indicators suggest the global economy is accelerating
- US data trends are strong
- The Federal Reserve will eventually cut rates
- Global financial conditions are also easing
- China looks more stable
- Governments are spending in a key election year
“This backdrop is risk positive and dollar negative”
'Eventual' Fed easing leaves lots of room for maneuver.