1. Newsroom
  2. A currency overview for 2023
Menu
Insight 13.12.2022

A currency overview for 2023

A currency overview for 2023

As we approach the beginning of a new year, UBP’s Global Head of Forex Strategy Peter Kinsella gives us an overview of the key currency trends to look out for in the next phase of the cycle as inflation starts easing and monetary policy tightening peaks.


Key takeaways:

  • The dollar is set to weaken modestly, reflecting such factors as waning inflation pressures, slowing interest rate hikes, the size of the US current account deficit, and stretched dollar valuations.
  • As a result, emerging market currencies like the Brazilian real and the Mexican peso will benefit due to their high interest rate profiles.
  • The euro’s and the pound’s trajectories will depend on energy prices. 

Peter Kinsella Peter Kinsella
Global Head of Forex Strategy
VIEW HIS LINKEDIN PROFILE
Expertise

Hedge funds

UBP is one of the longest-standing investors in hedge funds and a leading European player in the sector.


Further reading

Insight 12.09.2023

Tricky times for gold

Finanz und Wirtschaft (09.09.2023) - Over the summer months, gold has struggled to rise in a meaningful manner. The metal traded in a relatively tight USD 100 range this summer, roughly between USD 1,890 and USD 1,990. Gold price volatility continued to decline, and the latest one-month implied volatility is only 10%, the lowest in years. This shows that markets do not expect any sharp moves in either direction over the coming months.

Insight 30.08.2023

Reversing obesity to lighten the load on health and the economy

With obesity on the rise all over the world despite efforts to reverse the trend, impact investors need to join the fray alongside policymakers to reduce the increased mortality and the costs caused by the condition.

Insight 19.07.2023

China can evade a balance sheet recession

China’s economy decelerated in Q2-23, led by a sequential decline in manufacturing and investment. Services continue to expand at a slower pace. Below potential growth is resulting in rising unemployment in April and May.