The US dollar continues to benefit from tighter Fed policy and safe haven flows amidst growing investor concerns about trade protectionism, notes the analysis team at NBF.
Key Quotes
“With America’s trade partners including the European Union, Canada and China set to respond to latest U.S. trade barriers with retaliatory tariffs of their own starting in July, the world is indeed getting dangerously close to a full-blown trade war. As such our assumptions of a resolution and hence unimpeded trade flows will be severely tested over the coming months. If we’re wrong about policymakers being able to put economics ahead of politics, the USD will fare better than what’s currently shown in our forecasts.”
Share
