Thoughts from JPMorgan Asset Management on what they see as an approaching multi-year fall for the US dollar
Its some way off, they argue:
- USD may start falling by the end of 2019
On what will prompt it (I added the numbers, otherwise verbatim):
"In the second half of next year,
- if the Fed did indeed pause,
- if the U.S. economy were decelerating,
- if the rest of the world stabilized or improved a little bit,
you could see how the dollar could fall."
More:
- "In terms of why didn't the dollar keep on falling this year, it's not so much that the U.S. sped up so much more than expected, it's that the rest of the world slowed down"
- "Looking to next year, we know that the U.S. is going to slow down to the rest of the pack"
And, a hedge:
- "But if there's some shock that pushes the U.S. into recession, causing another global crisis, then if it's bad enough, then people might fly to the dollar as a flight to safety."