Hans Redeker, Morgan Stanley Global Head of FX strategy offered a bearish view on the US dollar in the coming months and said:.

• Thinks that the dollar is near its cycle peak.

• US Q1 GDP report was a case of 'buy the rumor, sell the fact'.

• Says that the report was by no means convincing.

• PCE data later should show more moderation in inflation.

• That will put the spotlight on the Fed i.e. will they take steps towards a rate cut?

• There are signs that the global economy is recovering.

• The Chinese economy is improving and will have spillover effects to other economies.

• The time lag from Chinese rebound takes about two to six months.