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Kaspar Kirkegaard, currency strategist at Danske in Copenhagen, told Reuters that this is particularly likely if liquidity stress rises.
His comments come after the euro fell earlier today (August 19th) and the Swiss franc improved as demand for safe currencies increased.
"We could be moving towards the point where the market could start going long on the dollar again," Mr Kirkegaard asserted.
He added that people in FX trading could see the dollar supported "as long as leading indicators point to a heightened risk of recession".
Yesterday, the euro fell 0.4 per cent against the dollar to $1.4259, coming down from a session peak of $1.4340.
This comes after William Poole, FX strategist at FC Exchange, told the Daily Telegraph that the outlook for sterling is "bleak" and that Britain's image as a safe haven has been "crumbling" recently.
Posted by Chris Weaver
