Analysts at JP Morgan predict that the American dollar’s recent bearish momentum could lose some steam if the pendulum begins to swing from cautious optimism back towards pessimistic caution.
The global Google Activity Indicator, a real-time proxy for the recovery in global growth, has been the single best indicator for the US dollar this year, analysts said and added that it is starting top out.
Meanwhile, other models based on how coronavirus infections in the US and around the globe are related show a neutral US dollar outlook for now. While the increase in global infections is dollar positive, the surge of cases in the US is dollar negative, the investment bank’s research note said, according to Bloomberg.
The dollar index, which tracks the value of the greenback against majors, is trading at 96.15 at press time, having declined from 102.99 to 95.72 in 2.5-months to June 10.
Share
