Uncertainty may be an existing Trump presidency theme, but last month many lessons have been learned that there is a continuous impact on both politicians as well as investors. First, the safe attraction of US wealth and the USD is not as considered gold as it is assumed. Second, China's disobedience before the trade war with the US forced the market to re -evaluate the strengths and weaknesses of both sides. As a result, the speculation that it could be the US, rather than China, whose blinks first gathered some support, Rabobank's FX Analyst reports Jane Foley.
EUR/USD can correct 1.10 in the development of trade
“Both of these factors suggest that Trump's hand driving dealing with US trading partners may not be as strong as he expects. We see the scope for EUR/USD to be returned to 1.10. That said, US foundations weakened and we saw a pair of money in EUR/USD1.15 in a 12-month look.”
“Behind Trump's trade war, Rabobank now sees the chances of a US contraction greater than 50%. He said, looking at inflationary risks associated with tariffs that we did not expect that the Fed Fed should provide some rates as the market expects.
“This morning, the press reports indicate that the EU may be preparing a plan to lower tariff barriers and not tariffs. It can be shown to the White House next week to jump trading conversations. If the more upcoming news is coming in front of this, we hope the USD will benefit from the short cover. That is said, in view of the risk of retreat,”
