The USD ended 2022 on the back foot after a strong retreat in the last few months, and it continued to remain very weak in the first few months of 2023, with expectations for the FED to stop raising interest rates and reverse the policy. However, the FED kept raising rates until the summer this year and the USD turned bullish eventually, but as inflation continues to slow, the FED has announced the policy shift next year and markets are expecting rate cuts to come soon.