Analysts Say $2,500,000,000,000 ‘Avalanche’ of Selling Could Hit US Dollar, Warn Trade Wars Threatening Greenback’s Appeal: Report
The US dollar could undergo a major sale by Asian investors and exporters triggered by trade tensions, according to a pair of macroeconomic and currencies.
Analysts of Epirizon SLJ Capital, Stephen Jen and Joana Freireat, say that in a new investment note that Asian investors have accumulated a massive USD pile which could be abandoned in mass if the commercial wars intensifies and that the dollar is weakening, reports Bloomberg.
According to analysts, if the United States based on the United States is developing, a significant number of Asian investors could bring substantial capital back to them or seek to strengthen their defenses against a drop in the USD.
This, warning, could leave the dollar confronted with an “avalanche” of 2.5 billions of dollars of the sale.
“We suspect that these dollars' holes by Asian exporters and institutional investors can be extremely important-perhaps around 2.5 billions of dollars-and pose strong risks of decline for the dollar towards these Asian currencies.”
Bloomberg says that his dollar gauge dropped about 8% compared to a February summit. Meanwhile, Asian currencies have strengthened against the greenback in the last month.
President Trump signed an executive decree in April which imposed a 10% rate on all imported goods entering the United States, with the aim of increasing national manufacturing. The president also published a proclamation which slapped the reciprocal rates on dozens of countries.
The Trump administration says that it is currently engaging with more than a dozen countries around the world to make new commercial offers.
Meanwhile, the Secretary in the United States of the Treasury Scott Bessent and the Representative of Commerce Jamieson Greer should meet their Chinese counterparts to discuss commercial and economic issues in Switzerland this week.
Follow us X,, Facebook And Telegram
Do not miss a beat-Subscribe to obtain alerts by e-mail delivered directly in your reception box
Check price action
Surf the daily Hodl mixture
& nbsp
Warning: Opinions expressed at Daily Hodl are not investment advice. Investors should make their reasonable diligence before making high-risk investments in bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and that all the losses you may undergo are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and the Daily Hodl is an investment advisor. Please note that the Daily Hodl is participating in affiliation marketing.
Image generated: Midjourney
