Attack on Dollar Dominance: Which Direction Are Morgan Stanley and Others Moving?

Banks such as Morgan Stanley, Credit Agricole, and TD Securities, which operate effectively in European markets (ECB), are challenging the dollar's dominance, contrary to the consensus favoring a stronger dollar. This situation, combined with risks arising from global trade wars, has heightened concerns that the dollar could weaken further.

Currency strategists at these banks argue that the dollar may weaken, contrary to the consensus expecting a stronger dollar. This implies that such a scenario could be possible, especially if global trade wars persist and economies stagnate. Currency strategists at Morgan Stanley suggest that the dollar could fall below the 0.95 level against the Euro.

The risks of global trade wars and a weakening dollar are encouraging investors to adopt a more cautious approach. This situation is prompting portfolio managers and investors, particularly those with dollar-denominated investments, to take precautions against a potential dollar decline. Especially investors operating in risky regions and those with dollar-denominated investments have begun reviewing their investment strategies in anticipation of a possible dollar weakening, in order to capitalize on this trend.