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Analyst: The US dollar is still overvalued and faces medium to long-term weakening risks.

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According to a report by Jinse Finance, Marc Cogliatti, an analyst at Validus Risk Management, stated that the US dollar will continue to face weakness in the medium to long term. He believes that although it has fallen since Trump took office in January, the dollar is still overvalued. Trump has also been advocating for a significant drop in Intrerest Rate. Although this has not yet been realized, concerns about the independence of the Fed have weighed on market sentiment. In addition, he stated that the ever-expanding deficit has long been a potential threat to the stability of the US debt market. He said that while the market rarely fluctuates in a straight line and will experience consolidation periods, any recovery of the dollar may be short-lived.

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