Four Reasons Why Investors Expect US Dollar to Keep Sliding
- The Fed could cut more than other central banks, history shows
- De-dollarization is a theme with real traction from investors
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Professional investors see the dollar sliding even further from last year’s two-decade highs, as the market has underpriced the Federal Reserve’s oncoming easing cycle.
Some 87% of 331 survey respondents expect the Fed to cut interest rates to 3% or below — some significantly so — in a loosening that 40% believe will start this year, according to the latest MLIV Pulse survey. That stands in contrast to market pricing that puts the implied policy rate around 3.05% in two years.