The dollar unraveled in January and some see more declines in its future
On Jan. 17, currency traders pushed the dollar lower after Trump expressed concern about the strength of the currency, describing it as “too strong,” considering where currencies like China’s yuan USDCNY, +0.0058% and the Japanese yen USDJPY, -0.69% were trading. Yesterday, Trump’s National Trade Council head, Peter Navarro, in an interview with the Financial Times (paywall), sparked a sharp rise in the euro USDEUR, -0.3446% versus the dollar.
The action prompted Steve Barrow, currency and fixed-income analyst at Standard Bank in a Wednesday note to forecast that the roller-coaster ride for the buck would likely end with greenback significantly lower at the end of Trump’s tenure in the White House. Barrow predicts a 10% near-term rise for greenback followed by “a multiyear downtrend that sees this entire rise, and much more, reversed as we head towards the next election.”
….related: Trump is waving adios to the longstanding ‘strong dollar policy’
