In the midst of the current saga of vaccines against the coronavirus (COVID-19), the Financial Times (FT) published an article, relying on Wall Street analysts, to suggest a 20% drop in the US dollar index (DXY) during the year. 2021 if vaccines cause an economic rebound.
The report quotes Calvin Tse of Citi Bank as saying: “The vaccine distribution that we believe will drive all of our bear market indicators, allowing the dollar to follow a path similar to what it experienced in the early to mid-2000s.” . The analyst accepted the forecast of a considerable fall in the dollar.
Additionally, “Goldman Sachs expects the dollar to slide 6% on a trade-weighted basis over the next 12 months,” the Financial Times article said while also marking a decline from Deutsche Bank, TD Securities and Barclays.
That being said, the DXY is holding back from the eight-day low as it rounds the 92.45 level at the end of the Asian session on Thursday.
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