Analyst: The US Dollar is still overvalued and faces the risk of weakening in the medium to long term.

Marc Cogliatti, an analyst from Validus Risk Management, stated in a report that the US dollar will continue to face weakness in the medium to long term. He believes that despite a slight decline since President Trump took office in January, the dollar is still overvalued. Trump has also been advocating for a significant reduction in interest rates. Although this has not yet been realized, concerns about the independence of the Federal Reserve have weighed on market sentiment. In addition, he mentioned that the constantly expanding deficit has long had the potential to destabilize the US debt market. He stated that although markets rarely move in a straight line and may go through consolidation periods, any recovery in the dollar could be short-lived.