Analysts at Deutsche Bank warn of the onset of a long-term decline of the dollar due to growing dissatisfaction with US leadership and economic changes on the global stage.
Forecast of Dollar Decline
Deutsche Bank strategists George Saravelos and Tim Baker indicated that the dollar could drop to levels not seen since 2014.
Impact of Trump's Tariffs
The analysts noted that dissatisfaction with President Donald Trump's trade policy is reducing the attractiveness of the United States to investors. It is expected that other countries' rising share of economic stimulus will contribute to the loss of interest in US assets.
Confidence Crisis and Its Implications
George Saravelos expressed concerns that the dollar might face a confidence crisis, which could lead to market fluctuations resembling panic. This could undermine the fundamental principles of the currency market.
Thus, Deutsche Bank warns of significant changes in the US economy that could greatly affect the dollar's position in the coming years.
