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FX Trends: G10 FX: Back to basics

23 July 2024

Key takeaways

  • In a period of headline chasing, we prefer to go back to the basics of our FX framework…
  • …which still points to a strong USD, although not necessarily a strengthening USD
  • In the weeks ahead, we look for modest USD upside against the EUR, AUD, NZD, and JPY (barring a surprise BoJ July hike), but expect the GBP to be resilient and the CAD to rally

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.

Note: ^DXY = US Dollar Index, is an index (or measure) of the value of the USD against major global currencies, including the EUR, JPY, GBP,CAD, SEK and CHF. Source: HSBC

Explanation of terms

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