Currency Outlook

NOVEMBER 2023 – IN BRIEF

What Happened

  • In a roller-coaster type of month, the U.S. Dollar managed to escape with a slight 0.1% gain in value
  • In the midst of tense relations between global powers, a new armed conflict has begun in the Middle East, spurring further obstacles to global trade and peace
  • Euro fortunes turned for the better as the shared currency recuperated almost 1.0% against the Buck
  • Few majors such as Sterling (GBP) and Swiss Franc also up by over half a percent; first climb since August
  • The Mexican Peso tumbled as inflation continued to decelerate and despite evidence of a solid economy

Monex USA’s View

  • Doom-and-gloom scenarios will remain a feature as escalation in violence threatens to deteriorate international integration and global well-being
  • Domestic performance in the U.S. will be key to carry the Dollar as Fed-hike expectations fade away
  • A resurgence for Euro could be halted by digesting underwhelming indicators from the third quarter
  • MXN highly volatile as Mexico continues to accommodate to new demands in trade and oil flows
  • Mixed outlooks and confusion will be common to close the year as risk items are amplified

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