Posted on 01/06/2024 9:45:27 AM PST by EBH
Multinational investment bank Morgan Stanley downgraded the outlook for the U.S. dollar from ‘Bullish’ to ‘Neutral’ on Friday. The global bank cited that the Federal Reserve initiating interest rate cuts led to the decline of U.S. Treasury yields. Morgan Stanley’s outlook for the U.S. dollar is now officially ‘Neutral’ and downgraded from its previous stance of ‘Bullish’. The downgrade comes at a time when the BRICS alliance is advancing to uproot the U.S. dollar’s global supremacy.
Surprisingly, Morgan Stanley was the only bank that provided fodder to the U.S. dollar terming the currency ‘Bullish’ last year. The bank has now taken a U-turn calling the U.S. dollar’s prospects ‘Neutral’ in the global markets. The U.S. dollar index is on a steady decline in the last three months and currently stands at 102 points. Goldman Sachs had already termed the U.S. dollar as ‘Bearish’ in December last year.
“Our conviction about dollar strength has waned meaningfully,” read the Morgan Stanley report. “US data deceleration has compressed growth differentials. U.S. rates have fallen further compared with peers, and investors appear far from defensive based on equity returns.”
(Excerpt) Read more at watcher.guru ...
Stanley Downgrades The U.S. Dollar“
Thanks Joe.
Too late, Biden already did that.
Joe Biden’s / Nancy Pelosi’s Inflation Reduction Act
Which does anything but
We are sooooo in trouble
I guess they don’t grade on a curve.
Since May 2022, the US Dollar has been downgraded about 10 times.
One problem...
As I write this, the USD is trading at 102.155 against a basket of foreign currencies.
Except for one brief dip under 100.00 last July, the USD has been trading over 100.00 (neutral) for the last 19 months.
I agree - it should be going down, but apparently all the other currencies are in even worse shape than the USD!
“I agree - it should be going down, but apparently all the other currencies are in even worse shape than the USD!”
The dollar is the only game on the planet and it is a very small planet.
So this tells me the fed is all in for Biden. Why the hell would they lower interest rates now?
Thanks for that info to soften the blow ... a little bit, anyway.
Doesn’t affect me. I don’t have any.
You’re going to bet long term on Russia and China?
Shades of 1929. Same perp.
“Multinational”
Says it all right there
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