Fynsa
At the traditional financial conclave, the Fed chairman noted that the move in rates continues with more upside risks than downside risks, and that he was ready to continue raising them if necessary.
And suddenly, interest rates are important again.
It seems fair to ask whether the dollar's uptrend will continue or whether these are levels to exit long positions or perhaps bet on declines.
Despite higher financing costs and higher home prices than two or three years ago, the U.S. residential market will continue to perform well.
The likelihood of a further hike or a further pause at the Fed's next September meeting will depend on data developments.
There are still opportunities, but the focus should remain on the search for investment grade opportunities in the region, to the detriment of high yield.
Nathan Pincheira and Humberto Mora, of Fynsa, provide their outlook for the economy and investments in the first half of 2023 and for the months ahead.
Our Softlanding baseline scenario is based on a moderation of inflation and greater resilience of activity.
Speeches and communications from the Central Bank Board have only been along one line: it is still too early, risks are high and policy error can be very costly.
As long as the U.S. economy continues to prove more resilient, and if monetary policy cannot quickly become more accommodative, it is difficult for the dollar to sell off substantially.
