The US dollar is threatened to continue to be under pressure due to the Fed's interest rate cut discourse. Here are the views of world experts on the prospects of the US dollar in 2024.

The US Dollar Index (DXY) slumped to the 101.50s after the Christmas celebration (27/December), trading at its lowest level in six months. The greenback's fate contrasted with the performance of Wall Street stock exchanges which continued to climb amid the Santa Claus Rally.

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Trading volumes were sluggish due to the long holiday ahead of the turn of the year, so movements in major pairs were minimal. Meanwhile, the appeal of the US dollar is waning.

The US dollar by the end of 2023 is likely to post its worst performance since 2020. This is because speculation about Fed interest rate cuts is increasingly lively. Many analysts also expect the US economy to slow down along with falling inflation, although not to the brink of recession.

The US dollar is even threatened to continue to be depressed until next year. Especially if the US economic advantage is reduced and China's situation improves.

"Going into 2024, if the USD continues to trade at a higher premium to its fundamentals (which have fallen compared to last year), it will be vulnerable to a pullback when (the Fed) switches from policy tightening to policy easing," said Amundi, one of Europe's largest investment managers.

Seasoned experts at multinational financial institutions generally have mixed opinions on the outlook for the US dollar in 2024. Some analysts are more pessimistic about the USD outlook, such as experts from Amundi, Goldman Sachs, and Bank of America. However, others - Morgan Stanley, Danske Bank, and HSBC - are confident that the US dollar will be able to maintain its throne.

Morgan Stanley thinks the US dollar will stay ahead thanks to its distinctive "safe haven" characteristics. The US dollar will also remain strong if the Fed keeps the current interest rate level for longer than the market expects. Therefore, Morgan Stanley lists "short EUR/USD" as one of the top trading ideas for 2024, with a target of returning to parity (1.00) in the first quarter.