empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

03.04.201916:43 Forex Analysis & Reviews: Sunny day for the dollar seems to be nearing sunset

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Over the past year, the greenback has been strengthened mainly due to the divergence in the economic growth of the United States and the rest of the world, as well as trade conflicts, and the monetary tightening of the Fed.

However, the upward trend in the USD index may be questionable when neither the Fed nor the White House is against the weakening of the US currency.

Exchange Rates 03.04.2019 analysis

The picture for the dollar is not entirely rosy in the light of the fact that Washington and Beijing can sign an agreement on ending the trade war. The gradual restoration of European and Chinese GDP will make it possible to count on the dispersal of the global economy.

In addition, it is possible that in order to achieve the goal of raising the country's GDP by 3% under the conditions of the "fading" effect of the tax reform and the Fed will have to at least reduce the federal funds rate.

According to HSBC experts, instead of simply reducing the rate, the regulator can launch a new asset purchase program.

In such conditions, the US currency will be forced to weaken.

"The best days for greenback this year seem to be over," experts at Morgan Stanley said.

According to their estimates, the dollar could drop by 6% by the end of the year against the background of a slowdown in the US economy and a softening of the Fed's position.

"We think that the dollar has peaked in the current cycle and may be cheaper than the market expects. The weakening of the "American", in turn, will help reduce the attractiveness of investments in dollar assets, "representatives of the financial institution said.

Viktor Isakov
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off