Abdelaziz Albogdady: The Fed's dovish signals may trigger a sell-off of the dollar

According to Jinshi News, FXEM analyst Abdelaziz Albogdady stated that although the dollar has stabilized after falling to multi-year lows, it still faces downside risks. The weakness of the dollar is mainly due to Trump's comments signaling tolerance for currency depreciation, raising concerns that Trump may nominate a more dovish Federal Reserve chairman, which would imply looser monetary policy and decreased institutional independence. Coupled with widespread unease over domestic political risks in the United States, the dollar remains under pressure. Any dovish tendencies could exacerbate the downward pressure on the dollar and U.S. Treasury yields.