Year-end support for United States Dollar ahead of later softening – National Bank

The Dollar is expected to weaken gradually in 2025 as relative-rate support peaks. National Bank strategists Stéfane Marion and Kyle Dahms expect support to hold through year-end, citing persistent U.S. inflation and the prospect of further Federal Reserve tightening. Weaker global risk appetite is also driving safe-haven demand, they note, while midterm elections present a medium-term headwind.

Fed tightening and midterm elections guide Dollar outlook

"The U.S. dollar remains supported by persistent inflation and the prospect of further Fed tightening."

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

"Following October’s pause, another firm CPI report reinforces our expectation for tighter policy before year-end, while a deterioration in global risk appetite could provide further support through safe-haven demand."

"We expect the dollar to remain supported through year-end before weakening gradually in ൭൫൭൲ as relative-rate support peaks."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)