JPMorgan and Euroclear see long term dollar weakness
JPMorgan and Euroclear executives expect the dollar to weaken long term due to US debt levels. They urged European reforms to attract more global investment.
JPMorgan Chase & Co EMEA CEO Patrick Thomson warned the United States dollar will weaken long-term as unsustainable debt levels erode its fiscal position. The dollar has risen almost 2% against peers since conflict began in Iran in late February. The euro and Chinese yuan have emerged as primary beneficiaries as investors seek diversification away from American fiscal risks.
Thomson told an International Capital Markets Association panel that fixed income investors prioritize fiscal balances and the ability to repay debt. While Treasury hegemony remains, the current U.S. debt trajectory is unsustainable.
