The volume of short positions on the dollar index almost doubled by the end of the year and reached its highest since March 2011. Bloomberg writes with reference to data provided by the CFTC.
The article notes that since the beginning of this year, the ICE Dollar has dropped by almost 6%. The American currency is no longer in high demand among investors. It no longer meets the criteria for a safe haven currency amid the Fed's unprecedentedly soft monetary policy.
Goldman Sachs analysts believe that the fall of the US dollar will continue in 2021. A number of factors will contribute to this. Among them: the US current account deficit, negative government bond yields, and the overvaluation of the country's assets. At the same time, Goldman Sachs analysts cannot say how long the dollar will fall. In their opinion, this will depend on the dynamics of liquidity, as well as on how the situation in the country related to the spread of coronavirus will develop.
Currently, the number of infections in the United States continues to grow at a rapid pace. In total, almost 20 million cases of diseases have been recorded in the country.