Weak global demand will hit the U.S. economy and cause the dollar to sell off in the second half of the year, one analyst told CNBC, contradicting the view held by the broader market that the greenback will rally.
Saxo Bank's chief economist Steen Jakobsen expects euro/dollar to hit $1.40 as the U.S. economy underperforms.
"My model has always said there would be a weak first quarter, a very strong rebound in the second quarter and then we'll see a sell-off based on the fact that there is no demand," Jakobsen told CNBC in a TV interview.
"If everyone is so bullish on the dollar why is it we are still trading $1.34 (against the euro)? We should be trading $1.20, $1.25 based on perception.
"Fourteen (2014) will be a huge disappointment and I disagree with pretty much everyone that the dollar is going to come back, I think growth will be significantly slowing down."
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The comments come after data showed the U.S. economy created 209,000 jobs in July, falling short of market expectations, as the unemployment rate climbed to 6.2 percent, sparking concerns that the recovery in the world's largest economy may not be sustainable.