Barclays: The dollar may decline further, but strong U.S. economic data will limit the downside

TechFlow, May 21 — According to Jinshi Data, Barclays analysts said in a report that the dollar may decline further in the near term, although the drop could be limited given the relative resilience of the U.S. economy. Bond market volatility is creating a negative environment for the dollar, and U.S. trade policy missteps, shifts in rhetoric around tariffs, or weak data could further weaken the currency. However, analysts expect the dollar will not depreciate significantly. They noted that the recent de-escalation of tariffs implies the U.S. economic damage may be smaller than feared. Aside from short-term concerns over the U.S. budget deficit, Trump's fiscal easing plans are more likely to strengthen the dollar than if he had opted for fiscal tightening.