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FX Trends: USD to extend rally, but…

26 Apr 2024

Key takeaways

  • The USD is leading other G10 currencies so far in 2024, supported by a big shift in the pricing of Fed cuts.
  • For the USD to stay ahead, other support would probably be needed, including the existing level of USD yields, dovish moves outside the US, and possible bouts of risk aversion.
  • We see the GBP, the AUD, and NZD facing near-term downside risks against the USD.

Our tactical view

Table of tactical views where a currency pair is referenced (e.g. USD/JPY):An up (⬆) / down (⬇) / sideways (➡) arrow indicates that the first currency quotedin the pair is expected by HSBC Global Research to appreciate/depreciate/track sideways against the second currency quoted over the coming weeks. For example, an up arrow against EUR/USD means that the EUR is expected to appreciate against the USD over the coming weeks. The arrows under the “current” represent our current views, while those under “previous” represent our views in the last month’s report.

Explanation of terms

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