BCA Research Chief Strategist sees US Dollar falling by mid-2025 on Trump policy woes

On Thursday, BCA Research, a prominent financial research firm, shared insights into the future of the U.S. dollar, forecasting a potential decline by mid-2025.

Marko Papic, Chief Strategist & Senior VP at BCA Research, expressed a positive outlook for the dollar in the near term, particularly as President Trump continues to promote tariffs and tax cuts. However, Papic anticipates that the combination of high U.S. Treasury bond yields and a growing budget deficit will compel the President to moderate his aggressive fiscal policies, which could ultimately weaken the dollar.

The strategist pointed out that the U.S. government’s reliance on stimulative fiscal policies to bolster American assets is unsustainable, and he expects the dollar to start declining once the reality of government spending becomes apparent. Despite a strong jobs report that has recently fueled the dollar’s performance, Papic cautions that this upward trend may not be sustainable in the face of fiscal policy challenges.

Papic believes that while the dollar could potentially revisit its 2022 highs of 113 on the dollar index in the short term, Trump’s fiscal approach will face significant hurdles within the next six months. The President’s ambitious spending plans are at odds with a budget deficit that has already reached alarming levels.

The need to balance these expansive fiscal ambitions with the demands of a bond market that is losing patience will likely force Trump to scale back on his promised tax cuts and trade tariffs. These policy shifts, which the markets have been counting on to maintain the strength of the dollar, could lead to disappointment and contribute to the currency’s eventual decline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    If I Invest $100 in Bitcoin Today: How Much Will It Be Worth in 2030?

    • April 4, 2025
    If I Invest $100 in Bitcoin Today: How Much Will It Be Worth in 2030?

    Short-term analysis for BTCUSD, XRPUSD, and ETHUSD for 04.04.2025

    • April 4, 2025
    Short-term analysis for BTCUSD, XRPUSD, and ETHUSD for 04.04.2025

    Short-Term Analysis for Oil, Gold, and EURUSD for 04.04.2025

    • April 4, 2025
    Short-Term Analysis for Oil, Gold, and EURUSD for 04.04.2025

    Are You Holding Uninvested Cash? NAGA Now Offers Interest on Euro

    • April 4, 2025
    Are You Holding Uninvested Cash? NAGA Now Offers Interest on Euro