ING: "Sell America" Trade Inflicts Lasting Damage on U.S. Dollar

The U.S. dollar remains under pressure despite strong economic growth and declining inflation. The greenback has fallen 9.4% over the past year and is down nearly 10% in 2026 against a basket of currencies. It has lost 8% against sterling and 12% against the euro, while the Stoxx Europe 600 is up 4% year-to-date compared to a 0.14% decline for the S&P 500. ING analyst Francesco Pesole attributes the weakness to the ongoing "Sell America" trade. Rising unemployment and soft hiring suggest the Fed may cut rates further, reducing dollar asset yields. The dollar has also lost safe-haven appeal, with confidence yet to recover from mid-January's sell-off.