Dollar To Clear Recent Weak Period Unscathed (RTRS Poll)

"The U.S. dollar is set to clear its recent weak period unscathed and remain dominant because the number of reasons supporting it, including its safe-haven status, still strongly outweigh any reason to sell, according to a Reuters poll. Risk assets, which had their worst start to the year since the COVID-19 outbreak in 2020, pushed the dollar to a nearly two-decade high last month. A minor rebound in stocks last week partly held the dollar back from retaking those levels and got many talking about a snap in the trend. But most say it's too soon to discuss that.”

• “Indeed, a near two-thirds majority of strategists, 28 of 44, said the dollar's recent pullback would last less than three months. Among those, 16 said it would die down as early as end-June. Six said three to six months, three said six to 12 months. The remaining seven chose over a year.”
• “Nearly a two-thirds majority of analysts, 25 of 39, who answered an additional question said strategies of going long the dollar and shorting either emerging or major currencies would dominate trading over the next three months. But the wider poll of nearly 60 currency strategists reiterated the view the dollar will weaken marginally over the 12-month horizon. While the euro, the Japanese yen, the British pound and the Swiss franc were forecast to gain against the dollar over the next 12 months none were expected to recoup their year-to-date losses.”