Market Outlook: HSBC Predicts Strong Performance for USD in the Year Ahead

Forex - HSBC analysts stated in a research report that the USD is likely to perform well in the coming year. They noted that the USD may have weakened during Trump's first year in office, but they do not expect the same performance to be repeated during Trump 2.0. They attributed this to, among other factors, relatively higher U.S. yields and a divergence in the global growth cycle. Meanwhile, HSBC argued that the outlook for currencies highly linked to the U.S. through trade or dependent on the global trade cycle is set to be challenging.