 |
| Crédit Agricole Advises Against Selling USD Before Federal Reserve Finishes Hiking Cycle |
Crédit Agricole economists are advising investors to hold off on selling the US Dollar until the Federal Reserve finishes its hiking cycle. Their recent analysis of FX price action during the past six Fed tightening cycles since 1980 suggests that selling the USD before the Fed is actually done hiking is not a wise move.
According to Crédit Agricole, the combination of ongoing Fed hikes and intensifying recession risks tended to offer the USD a moderate boost on average. Therefore, investors should not be too quick to jump ship and should wait until the Fed has completed its hiking cycle before deciding whether or not to sell the USD.
It is important to note that the Federal Reserve has already started hiking interest rates and is expected to continue doing so in the near future. While investors may be tempted to sell the USD in the face of these hikes, Crédit Agricole's analysis suggests that this may not be the best strategy.
As always, investors should carefully consider their options and seek the advice of financial experts before making any significant moves with their investments.
