Investing.com — The surged to multi-year highs on Friday, hitting a level that an expert said would mark the pricing in of the ‘Trump Trade,’ leaving little room for further upside and creating an opportunity to turn bearish on the greenback.

The jumped 0.5% to to 109.67, and had earlier hit 109.91 — its highest level since November 2022.

“Start selling the dollar if our DXY 110 target is breached. Slowing global growth and a relatively more hawkish Fed have been priced in. So is a Donald Trump presidency,” Chester Ntonifor, Foreign Exchange/Global Fixed Income Strategist at BCA Research, said in a note.

The firm argues that this level would have fully priced in the “Trump-trade” and would be initiated from significantly overvalued levels.

The call for a weaker dollar comes as the strategist believes that “the bout of strength in US inflation, especially relative to other markets, is in its last innings,” amid expectations for a U.S. slowdown. 

While the latest jobs report for December signaled little sign of a slowdown, Ntonifor sees the risk of the U.S. economy slowing due to “tightening financial conditions in the US.”

Looking ahead, Ntonifor suggested that a potential scenario could unfold later this year where “equity markets correct, the US dollar declines, and bond yields fall.”