Portfolio Manager Gautam Kalani discusses his view that the stars are now aligning for the next leg of dollar weakness. Key Takeaways The case for a bearish USD trade has returned, with a soft patch in the labor market (leading to looser monetary policy going forward), combined with an eroded ‘risk premium’ for negative structural factors (such as Fed independence). This creates an asymmetric opportunity to be short the dollar, with cyclical factors in place to provide a bridge to medium-term dollar weakness.