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USD doomed to failure under any scenario

USD doomed to failure under any scenario

Interestingly, there are always a few pundits who immediately come up with forecasts of the US dollar crash whatever happens in the international arena. No matter what events unfold and what participants are involved, such prophets predict that the US dollar is doomed to failure. The presidential election in the US was a great excuse for such prophecies. Remarkably, the US currency is on the verge of a collapse under any scenario.

Amid delays in vote counting, most analysts shared the viewpoint that Donald Trump’s further presidency will be the major reason behind a slump in the US dollar. As soon as interim data was reported and it was clear that Democratic nominee Joe Biden had outpaced his Republican rival, prophets changed their wording but still predicted bleak prospects for the greenback. After Joe Biden takes office as next President, the US dollar will extend weakness as the world’s reserve currency, analysts at Citi Private Bank said in their forecast. The thing is that Donald Trump at the helm of the US would forge ahead with his protectionist stance that would escalate a further conflict between the US and the rest of the world. This would entail a challenge for the US dollar. On the contrary, Joe Biden pledged his voters to calm down geopolitical risks. So, his presidency will be beneficial for emerging markets, thus boosting risk-on mood and reinforcing EM currencies. In turn, this will be also to blame for the US dollar’s weakness.

One thing is certain. The global community welcomed Biden’s victory because Washington would again focus its foreign policy on maintaining alliances in force and forming new ones. The community is interested in his conventional and more predictable ruling.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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