According to Bank of America (BofA) FX analysts, the US Federal Reserve is expected to continue raising interest rates amid strong economic growth and inflation pressures, and the US dollar is poised to strengthen further.
BofA analysts said in a report released today that despite the recent softening in consumer price data and market expectations for a more dovish FED, the dollar remains bullish and maintains its forecast for a higher dollar in 2023.
“Despite the low June CPI figures and the Fed's repricing, we maintain our upside forecasts for the USD for 2023,” BofA analysts said.
“US real policy rates are positive and the highest in the G10 until 2024. Inflation expectations and easing in financial conditions may prevent the FED from adopting a dovish stance.
BofA analysts said in a statement that they expect to raise rates again in September after Wednesday's 25 basis point hike.
After the interest rate hike on Wednesday, the Bitcoin price continued to follow a sideways course.
They predicted that the euro-dollar rate will decrease from currently around 1.10 to 1.05 by the end of 2023, while the dollar-yen rate will rise to 145 from currently around 115.
*Not investment advice.
