Commerzbank: dollar to turn lower when Fed cuts its key rate in 2023

It was the US dollar’s time to shine among other currencies in 2022. However, according to the forecast of economists at Commerzbank, the dollar will reverse course and weaken next year amid interest rate cuts. 

Fed watchers see the US central bank easing monetary policy in the second half of 2023. The Fed’s pivot will be driven by easing inflation and (albeit modest) economic downturn. In addition to this, Commerzbank expects further rate cuts in early 2024.