According to Greg Gibbs, Analyst at Amplifying Global FX Capital Pty Ltd, there are some signs that the US economy may be losing momentum.
Key Quotes
“A risk is that weaker global growth confidence generates more serious concerns for US asset markets, dampens expectations for Fed rate hikes and triggers a more significant correction in USD strength.”
“Eventually, strength in the USD would be self-defeating, tightening financial conditions for the USA and many emerging market economies that have liabilities to fiance in USD.”
“At some point it would more significantly undermine confidence in the USA and global economy to the point where US asset prices fall back to the pack, most likely bringing down the USD and US rates with them.”
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