Vaccine arrival expected to trigger dollar slump in 2021 – FT

Anil Panchal FXStreet

Amid the on-going coronavirus (COVID-19) vaccine saga, the Financial Times (FT) came out with a piece, relying on the Wall Street analysts, to suggest a 20% drop in the US dollar index (DXY) during the year 2021 if vaccines trigger an economic rebound.

The report quotes Citi bank’s Calvin Tse while saying, “Vaccine distribution we believe will check off all of our bear market signposts, allowing the dollar to follow a similar path to that it experienced from the early to mid-2000s.” The analyst went on to accept the forecast of a sizeable decline in the greenback.

Further, “Goldman Sachs expects the dollar to slide 6 percent on a trade-weighted basis over the next 12 months, said the FT piece while also marking the bears from the Deutsche Bank, TD Securities and Barclays.

That said, the DXY keeps pullback from the eight-day low while taking rounds to 92.43 during the early Thursday.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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