On Friday morning, the US dollar reached a six-week high of 1.3886 against the British pound; over the past month, the US dollar index (DXY), which tracks the dollar against six major currencies, has risen nearly 3%.
After the European Central Bank (ECB) announced its interest rate decision, the euro fell to a three-and-a-half-month low against the US dollar. ECB President Draghi stated that there are no signs of rising core inflation and that accommodative policies are still needed to support economic growth and inflation.
The head of HSBC's foreign exchange research team believes that, in the context of slowing economic growth in other countries, only the United States may see rising inflation data and the Federal Reserve normalizing interest rates.
He emphasized that in the coming weeks, a bull market for the US dollar is approaching, and HSBC's latest report estimates that the US dollar may rise by 5% to 10% against other major currencies.
