From Yahoo Finance: 2025-03-21 15:40:00

Speculative traders in the currency market are now bearish on the US dollar, with $932 million in bets on a weaker dollar. This marks a shift from January when $34 billion was wagered on a stronger dollar. Trump’s policies and US economic uncertainties are impacting the currency’s outlook.

Wall Street’s initial forecast for a stronger dollar in 2025 is now uncertain, with expectations for three rate cuts by January 2026. The Bloomberg Dollar Spot Index is on track for its worst monthly performance since 2023. Analysts cite fading support from Trump’s trade policies and negative sentiment on the dollar.

Deutsche Bank and Credit Agricole CIB strategists note that the dollar’s support from Trump’s policies is diminishing. Analysts underestimated the impact of trade tensions, public sector layoffs, and immigration restrictions on US growth and the dollar. The hype around the long-dollar trade related to Trump has not materialized as expected.



Read more at Yahoo Finance: Traders Bet on Weaker US Dollar for First Time Since Trump’s Win