USD to be more stable in 2023 after initial weakness in Q1 – Credit Suisse

The US Dollar is likely to be more stable in 2023 after two years of trending strongly higher. Strategists at Credit Suisse expect further USD weakness in Q1, followed by the development of a broad rangebound environment.

Further USD weakness in Q1, followed by a broad range

“For the DXY, we look for a test of a cluster of supports in the 102.99/101.99 zone – the March 2020 high, the 50% retracement of the 2021/2022 bull trend and importantly the back of the 2017/2022 five-year bull ‘triangle’ pattern. We then look for the DXY to find an important floor here.”