from Arabic Trader
Despite the temporary truce that has eased trade tensions between the United States and China, Bank of America maintains its negative outlook for the U.S. dollar, considering that the recent recovery of the dollar is tactical rather than a structural change in trend. Analyses indicate that there are still strong opposing factors negatively affecting the U.S. currency in the medium term.
The uncertainty in economic policies continues to cast a shadow over the markets, as trade tensions have only temporarily halted. Market volatility is expected to return later this summer as deadlines for tariff exemptions approach, raising concerns about the future of the dollar.
In terms of the real economy, the U.S. economy shows signs of slowing compared to before the outbreak of the trade war, due to weak investment and declining business confidence. Additionally, the dollar is suffering from negative effects due to the shrinking surplus in the U.S. current account, which limits the necessary investment flows to support the currency.