“Societe Generale Forecasts for Interest Rates and Bond Yields Impacting Dollar Index”

Arabictrader.com – Economists at Societe Generale Bank saw that interest and bond yields are still at the forefront of the factors that will affect currency movements during the coming period, especially after the relationship between interest and the dollar index has been fixed.

Experts at the French bank added that if US economic data continues to confirm expectations that the US Federal Reserve will continue monetary tightening, or at least not resort to monetary easing soon, this would provide significant support for the dollar index.

It should be noted that earlier, economists at the British HSBC Bank (LON:) saw that the American is likely to be exposed to more weakness during the coming period. That is why the bank’s experts pointed out that after the US Federal Reserve raised interest rates at the previous Wednesday’s meeting by 25 basis points, and hinted that the end of the interest rate hike cycle was approaching, this prompted economists to expect the continued weakness of the US dollar.

In this context, the Bank of England analysts explained that most of the US economic data showed a slowdown during the previous months, and if it continues to slow down, the US dollar index is expected to face further weakness.

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