The post Deutsche Bank warns ‘structural’ dollar crash will knock it to weakest level in 11 years appeared on BitcoinEthereumNews.com.

Deutsche Bank says the dollar is headed for its worst stretch in more than a decade. The warning came from the bank’s research team this week, saying a “major downtrend” is underway that will drag the dollar down to levels not seen since 2014. This forecast came in a note by strategists George Saravelos and Tim Baker, who pinned the blame on growing distrust in US leadership, a spike in global fiscal spending, and fallout from President Donald Trump’s trade policy. The warning followed a rough start to the week for the US currency. The dollar dropped to a 16-month low, and the Bloomberg Dollar Spot Index fell almost 4% in April. That puts it on track for the worst monthly performance in over two years. “The pre-conditions are now in place for the beginning of a major dollar downtrend,” George and Tim wrote. They said recent events had reshaped their outlook and now expect the EUR/USD rate to enter a long-lasting fall that could pull the dollar into a deep slump. EUR/USD price chart. Source: TradingView Trump’s trade policies push investors out of US assets George and Tim said investors are pulling out of US assets because of rising trade tension and a reassessment of America’s role on the global stage. They linked this to Trump’s tariffs, which have made the US a less attractive place to park capital.  They added that other nations are responding with fiscal stimulus plans, which are giving investors more reasons to put their money outside the US The euro is one of the biggest winners. It’s already gained more than 5% this month and has now broken through $1.15. Deutsche Bank expects the euro to reach $1.30 by the end of 2027, which is far above the $1.15 median forecast in a recent…

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Filed under: News - @ April 24, 2025 1:24 pm