Experts of the investment company, JPMorgan Asset Management, believe that the US currency may be on the verge of many years of decline.
“In the second half of next year, we will probably see a fall in the dollar. This will happen if the Fed really takes a pause in the cycle of rising interest rates, the pace of growth in US GDP slows down, and the state of the global economy stabilizes or slightly improves, “the experts said.
“However, more cautious steps by the regulator, a slowdown in economic growth in the United States and a tightening of monetary policy by other central banks are likely to result in the dollar completing 2019 at the same level as this year, or even lower,” they added.
“If the rate of increase in US GDP slows down to 2% and remains at this level for quite a long time, then in such a scenario, a decline in the dollar could become multi-year,” said analysts.
“At the same time, we assume that people in search of a safe haven will rush to buy dollars if the US economy slips into recession amid another global crisis,” they said.
The material has been provided by InstaForex Company – www.instaforex.com