TD bullish risk, bearish USD: global economy strong, China stabilizing, Fed to cut

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.

This article was written by Eamonn Sheridan at Source