©Reuters. Commerzbank: The US dollar is no longer a safe investment
Arabictrader.com – A number of Commerzbank experts said on Monday that a US recovery cannot be expected, despite the release of the US labor market report, which indicated the strength of the country’s labor market.
The bank’s economists said that despite positive US labor market data released last week, it is not considered sufficient to provide sustainable support for the US dollar index.
Some may think that the US Federal Bank won’t have a compelling reason to adjust monetary policy toward interest cuts now, but that assumption isn’t correct unless US financial markets maintain their strength.
It should be noted that the US financial markets were negatively affected by the aggressive tightening of monetary policy by the US Federal Reserve.
Analysts also pointed out that even as inflation declines; The US Federal Reserve may face other economic conditions that force it to cut the interest rate; Which will eventually lead to a decline in the US dollar.
