Barclays: no threat to the reserve status of the dollar
The market is full of talks about the end of the era of dollar domination, but the reserve status of the American currency is not threatened by anything, write the experts of Barclays. They ground their opinion on the depth of the US capital markets, as well as the huge share of the dollar in international trade.
In the near future, the dollar will continue to decline against the background of further diversification of portfolios, the expert predicts. He notes that the dollar indices DXY and BBDXY, as well as the euro / dollar, broke through important levels of support / resistance, and this event has attracted large long-term players who will sell the American currency for some time.
Swap lines, which the Fed has established with other central banks in the midst of the coronavirus crisis, flooded the world with dollars, writes Michael Krupkin. This, as well as a sharp decline in rates in the U.S., and provoked the collapse of the dollar, which we now observe.