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Will Trump Pursue, Tolerate, Or Resist US Dollar Strength?

The US dollar is on a roll,  crushing the yen and the euro. But will this last? Here is the view from Deutsche Bank:

Here is their view, courtesy of eFXnews:

It is possible that a strong USD will be worn by the coming administration as a badge of honor – a signal of global confidence in “Trumpism”. Much more likely, because it is more consistent with trade and manufacturing objectives, policymakers will wish to keep USD strength in check.  This is unlikely to translate into an overt attempt to drive the USD weaker.

In a world where the US is thinking about pump-priming its full employment economy, the strong USD would need to play a vital role in offsetting inflationary pressures, or the US bond market could go into a tailspin.

Against this backdrop  we believe there is likely to be some scope for USD appreciation of at least 5% on a broad TWI.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.