Citigroup analysts foresee potential widespread availability of coronavirus vaccines to help revive global trade and economic growth and fuel as much as a 20% decline in the US dollar in 2021, according to Bloomberg.
Key quotes/points
Vaccine distribution we believe will check off all of our bear market signposts, allowing the dollar to follow a similar path to that it experienced from the early to mid-2000s.
In addition to the impact from vaccine breakthroughs, the dollar will suffer as the Fed will remain dovish as the global economy normalizes, the rest of the world is likely to grow at a faster pace, and as investors rotate out of US assets and into international assets.
Should the US yield curve steepen as inflation expectations rise, this will incentivize investors” to hedge currency exposure. Given this setup, there is the potential for the dollar’s losses to be front-loaded,” with the currency spiraling lower sooner.
The dollar index, which gauges the greenback's value against majors, is currently seen at 92.50, down 4.18% on a year-to-date basis.
作者：Omkar Godbole，文章来源FXStreet，版权归原作者所有，如有侵权请联系本人删除。
风险提示：本文所述仅代表作者个人观点，不代表 Followme 的官方立场。Followme 不对内容的准确性、完整性或可靠性作出任何保证，对于基于该内容所采取的任何行为，不承担任何责任，除非另有书面明确说明。
暂无评论，立马抢沙发