"Morgan Stanley" expects a significant decrease in the dollar with the slowdown in economic growth

The US dollar is expected to decline to levels that have not seen since the middle of the Kofid-19 pandemic, with the pressure of reducing interest rates and slowing down economic growth, according to “Morgan Stanley”. The bank’s strategic analysts, including Matthew Horpnack, expect, in a memorandum released on May 31 that the US Dollar Index will fall by about 9% to 91 points about a year from now. The green currency has decreased since the beginning of this year, as commercial tensions have negatively affected the US currency. Analysts said in the memo: “We believe that interest rates and foreign exchange markets are starting to take large public trends that are expected to continue for a while, which is to lead to a greater drop in the dollar and the increasing decline in the mortgage curve, after two years of volatile trading operations within the wide price range.” Battle of the Dollar Horizon The report “Morgan Stanley” contributes to a set of skeptical votes in the horizon of the dollar, while clients and analysts assess the confusing trade approach followed by US President Donald Trump. Strategic analysts at JP Morgan, led by Mira Chandan, told investors last week that they are still taking a downward look at the US currency, and rather they recommended a bet on the Japanese yen, the euro and the Australian dollar. The dollar index fell by 10% from the peak it reached in February, as Trump’s commercial policy weakened the confidence in US assets, and led to an overview of the world’s dependence on the green currency. However, pessimism is still much lower than historical levels, and emphasizes the possibility that the dollar is exposed to further decline during the upcoming period, according to the information of the future commodities contract committee. The expectations of a greater decline in the US currency, the euro, the yen and Swiss francs will be the largest beneficiaries of the dollar, as many people, according to strategic analysts in Morgan Stanley, regard as a global safe outfit. They also expect the euro price to rise to about 1.25 against the dollar in the next year, compared to about 1.13 currently, with the fall in the green currency, and the pound star will also rise from 1.35 to 1.45 per dollar, supported by the ‘high return’ – the profits that investors can bring about the retention of the currency – and a low risk. Similarly, the yen can rise from the current exchange rate at 143 yen for the dollar, to 130 for the dollar, according to analysts. The bank pointed out that the revenue of the US Treasury bonds for ten years is likely to reach 4% by the end of this year, and that it would expect a greater decline in the next year if the Federal Reserve lowered the interest rate by 175 basis points. The dollar fell against a group of currencies during trading as soon as the markets in Asia opened on Monday, while the “Bloomberg” index for the immediate dollar fell about 0.2%.