The US dollar has witnessed the worst since the global financial crisis, which has led to a recession in the United States, where ‘Morgan Stanley’ Bank believes that the US currency will experience more pressure than concerns about the health of the economy. In a memorandum of clients on Thursday, the total economy of the bank warned that the risk of closing the federal government is delaying in the United States, and the high value of assets abroad, all factors that can push the dollar to fall further before the final customs are imposed by the dollar since the dollar has taken over the dollar since 2008. The dollar weakness factors have strategic books in “Morgan Stanley”, including Matthew Horpach and Andrew Watros, in a client’s memorandum: “The factors supported as US growth are now considered to be taxing the US economy.” And “The possibility of an imminent closure of the government in the United States could increase the pressure on the dollar in general, as investors evaluate the implications of this on growth and future financial policy.” The pessimistic view of “Morgan Stanley” on the dollar has long been the focus of “Wall Street” since late last year, at a time when many banks expected the US currency’s strength to continue. At the beginning of 2025, the bank’s expectations were proven, as the dollar was facing increasing pressure. And important factors have contributed to changing the dollar’s path since January, the most prominent of which is the decline in US bonds, with the betting of the traders of further reduced interest rates by the Federal Reserve this year, in addition to the poor economic data and the confusion surrounding the trade policy of the new administration. In light of these developments, investors monitor the ongoing discussions in the US Congress on Government’s spending before the expected closure of the federal government on Saturday. The leader of the Democratic majority of Senate, Chak Schumer, said on Wednesday that his party would hinder the draft spending law offered by Republicans. Morgan Stanley, a bet on the euro and Sterling, recommended a bet on the rise of the euro against the dollar, along with the pound star and the Japanese yen, who have all achieved strong profits against the US currency over the past few weeks. The bank on Thursday expressed its goals on the trade recommendations and pointed out the purchase of the yen to achieve a rise of about 2% to the level of 145 yen against the dollar, and for sale the euro with the aim of climbing 3% to $ 1.12 against the euro, in addition to the pound star to achieve about 3% profit to $ 1.33. The yen has risen by 6.5% against the dollar since the beginning of 2025, beating most of the most important currencies, as investors bet on tightening the bank of Japan monetary policy, in a sharp contradiction with the financial facilitation adopted by other central banks, including the US “Federal Reserve”. At the same time, the euro has risen to its highest level against the dollar this week since October, supported by Germany’s historical decision to abandon decades of financial caution by declaring plans to increase the spending of defense and investment in infrastructure. ‘Morgan Stanley’ pointed out that the centers of traders in the options market want to buy the euro, a historical indication that the united currency still has room for more profits. “Over the past few weeks, the possibilities of financial expansion in Germany have made broader plans at the European Commission level to invest in Europe, more relatively attractive.” They added: “That’s why we see an extra field for the dollar to catch up with the movements of the relative judgments of shares.”
The dollar is threatened with a new decline and it is the best candidates to rise before it
