Mars Finance News, according to Jintiao, FXEM analyst Abdelaziz Albogdady stated that although the US dollar has stabilized after falling to multi-year lows, it still faces downside risks. The dollar’s weakness is mainly due to Trump’s remarks signaling tolerance for currency depreciation, with market concerns that Trump may nominate a more dovish Federal Reserve Chair, implying looser monetary policy and decreased institutional independence. Coupled with widespread anxiety over domestic political risks in the US, the dollar remains under pressure. Any dovish tilt could further intensify the downward pressure on the dollar and US Treasury yields.
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Abdelaziz Albogdady: Fed's dovish signals may trigger a sell-off of the US dollar
Mars Finance News, according to Jintiao, FXEM analyst Abdelaziz Albogdady stated that although the US dollar has stabilized after falling to multi-year lows, it still faces downside risks. The dollar’s weakness is mainly due to Trump’s remarks signaling tolerance for currency depreciation, with market concerns that Trump may nominate a more dovish Federal Reserve Chair, implying looser monetary policy and decreased institutional independence. Coupled with widespread anxiety over domestic political risks in the US, the dollar remains under pressure. Any dovish tilt could further intensify the downward pressure on the dollar and US Treasury yields.