Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    Four reasons why USD's current carry advantage is set to transition into a headwind – BofA

    Source Fxstreet
    Feb 9, 2024 15:45

    Economists at the Bank of America analyze the potential shift from the US Dollar's (USD) carry advantage to a significant headwind.

    Challenging period ahead for the USD

    The Fed is predicted to be one of the initial G10 central banks to reduce rates, challenging the USD's carry advantage.

    Given the higher starting point of US rates, their potential reduction could significantly narrow the rate differentials with other currencies, diminishing the USD's attractiveness.

    The USD stands as one of the most overvalued currencies in the G10, a factor that could amplify its vulnerability in a rate-cutting environment.

    Lower interest rates in the US typically boost global risk appetite, a dynamic that historically benefits currencies other than the USD.

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    US Dollar retreats further ahead of Durable Goods dataThe US Dollar (USD) weakens for a second consecutive day on Tuesday ahead of the first big batch of economic data releases this week, with Durable Goods orders as the main event.
    Source  Fxstreet
    The US Dollar (USD) weakens for a second consecutive day on Tuesday ahead of the first big batch of economic data releases this week, with Durable Goods orders as the main event.
    placeholder
    US Dollar set to rebound in the coming months – NBFAfter jumping out of the blocks at the start of the year, the US Dollar (USD) has run out of steam and is almost back to where it started 2024 against a basket of 26 currencies.
    Source  Fxstreet
    After jumping out of the blocks at the start of the year, the US Dollar (USD) has run out of steam and is almost back to where it started 2024 against a basket of 26 currencies.
    placeholder
    US Dollar sees mild gains ahead of FOMC meetingThe US Dollar Index (DXY) trades at 103.55 on Monday, reflecting minor gains.
    Source  Fxstreet
    The US Dollar Index (DXY) trades at 103.55 on Monday, reflecting minor gains.
    goTop
    quote