Deutsche Bank Warns of Structural Dollar Decline Amid US Policy Concerns
Deutsche Bank strategists George Saravelos and Tim Baker have issued a stark warning about the US dollar’s trajectory, forecasting a potential drop to its weakest level in 11 years. The note highlights growing distrust in US leadership, global fiscal expansion, and trade policy fallout as key catalysts for a "major downtrend."
The Bloomberg Dollar Spot Index’s 4% April decline—its worst monthly performance since 2021—signals mounting pressure. EUR/USD charts now suggest a prolonged dollar slump could be imminent, with the currency already hitting 16-month lows. This macroeconomic shift may accelerate capital flows into alternative stores of value.