According to a recent report shared by Insight Investment, policy shifts under President Donald Trump could influence the long-term outlook of the U.S. dollar (USD).
🔍 Key Highlights
Jill Hirzel, from Insight Investment, noted that U.S. policies emphasizing a stronger “America First” stance may reduce international capital inflows.
This could potentially weaken cyclical support for the U.S. dollar over time.
However, Hirzel also pointed out that growth outside of the United States remains limited — which may prevent a sharp decline in USD demand.
⚠️ Important Context
While a weaker dollar is possible, speculative short positions are already elevated.
Real interest rates in the U.S. are likely to remain high until meaningful signs of slower growth emerge.
As such, traders and investors may need to consider both upside and downside risks when evaluating the dollar’s trajectory.
📊 What This Means for Global Markets
Currency markets could see periods of increased volatility as policies evolve.
A weaker USD may create opportunities in emerging markets and highlight the role of digital assets like $BTC and ETH as alternative hedges.
The dollar remains a dominant global reserve currency, but changing macro trends could slowly reshape capital flows.
📌 Disclaimer
This post is for educational purposes only and should not be considered financial advice. All market movements involve risk — please DYOR (Do Your Own Research) before making any investment decisions.