Wall Street strategists turn bearish on US dollar, say dramatic falls likely – FT

After the US dollar fell to its lowest in three months against its six major rivals, the Wall Street strategists, including Goldman, JPMorgan, Deutsch  |  03/06/2020 11:01

After the US dollar fell to its lowest in three months against its six major rivals, the Wall Street strategists, including Goldman, JPMorgan, Deutsche Bank and Citigroup, argued in recent days that the currency’s long rally could be finally over, as cited by the Financial Times (FT).

Key quotes

“Several props for the dollar have recently fallen away or begun to wobble.“

“We had been discouraging investors from putting dollar shorts in their portfolios during the past few months because of our concern about the [backdrop], but that has changed.”

“Big economies including China’s had begun to reopen with low infection rates, while the Franco-German proposal for an EU recovery fund had boosted the euro by easing fiscal concerns across Europe.

“We now think it is appropriate for investors to position for dollar downside in their portfolios.”

Brighter sentiment over global growth, as lockdowns were eased, had become a “key driver” of the dollar sell-off.”

“We no longer have the confidence to stand in the way of this optimism and further neutralise our previously defensive trade recommendations.”

“If the global economy really is bottoming out and rebounding again, and US interest rates are at zero and potential growth is lower than emerging markets, we could see the dollar enter into a bear market that could last for five to 10 years.”

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com