HSBC Global Research Currency Outlook 2021 54 Pages
By HSBC FX Strategy

The USD trend is your friendThe USD should be a modest underperformerin 2021, and we think it is unwise to go againstthe trend for now. USD weakness is cyclicalrather than structural but we examine whatcould cause its decline to end.We still favour the AUD, NZD, CAD, theScandies and a number of EM currencies. TheEUR’s strength is more by default than merit,yet has some mild upside ahead. The USD andGBP are likely to underperform