The USD may continue to fall in 2021.

I mentioned the statements of morgan stanley analysts who recommended getting rid of the USD and paying attention to the stock market. Now UBS has talked about the prospect of further weakening the US currency. Experts from these banks agree that in 2021 the negative impact of the pandemic will decrease and incentives in the US will continue to grow. As a result, the stock market may continue to rise, putting pressure on the US dollar.

Ubs also notes the overall potential for growth in risky currencies, including in the context of the fact that the rapidly growing US national debt reduces the attractiveness of the USD as a safe currency. As a result, analysts expect the EUR/USD currency pair to grow in 2021 in the region of 1.20-1.25. But this scenario is only possible if quarantine restrictions in Europe are quickly and seriously reduced.

And now let’s move on to the published report on inflation in the UK. Actual data was better than forecast, and the annual value exceeded both the previous and forecast values. However, the activity of buyers of the GBP/USD currency pair remains moderate, indicating a shift in attention from macroeconomic indicators to advances in vaccine development.

Moving to the U.S. trading session note comments chapter 1 comments from james mcdonald asset management companies. During the interview, CNBC stated that the main U.S. Stock Index S’P500 is one step away from falling 20% or 700-800 points. Pay attention to the price chart of this index – in the daily time frame clearly visible shaped figure, which is similar to the letters W. According to James, this indicates the weakness of buyers and as a result increases the risk of the index’s collapse. If we see a collapse in US stock indices in the coming days or weeks, demand for the US dollar will rise sharply. Therefore, all investors who hold short positions in the US currency should take this into account. Changes in this scenario may occur if there are serious vaccine problems or a reduction in the amount of financial assistance in the United States.