US Dollar to see a cyclical fall in the second half of the year – Natixis

The Dollar will continue its cyclical decline, according to economists at Natixis.

Fed’s rate cuts expectations will reappear as inflation continues to decelerate

We still favour a cyclical fall of the Dollar in the second half of the year, bearing in mind that the US economy is likely to slide into recession under the effect of a marked tightening of banks’ credit conditions.

Moreover, Fed’s rate cuts expectations will reappear as inflation continues to decelerate and thus once again weigh on the USD.