Stellar Lumens (XLM) Forum with for newcomers and contributor's rewarded Check here




"!! Announcements -  AAUC (AA UNION CAPITAL) Investment strategy - US dollar stability
  • 1 Vote(s) - 4 Average
  • 1
  • 2
  • 3
  • 4
  • 5

#1
Gyrations of the USD tend to destabilize the world economy and financial markets. USD strength, as seen in H1 2018, can put severe strain on economies that require cheap dollar funding. Any significant weakness in the USD will put pressure on export champions, such as Germany and Japan. It will also raise the specter of inflation as commodity prices tend to rise sharply in response to a weak USD. The best of all worlds is a fairly stable USD. With Fed tightening being well advanced and the European Central Bank as well as the Bank of Japan gradually catching up, chances are good that the USD will indeed be stable.

A broadly stable USD against the majors should provide a platform for Asian currencies to find a firmer footing, especially if there is improved clarity on the trade tensions between the USA and China. A stronger EUR would also allow both the CNY and the SGD to appreciate against the USD without rising too much against their respective trade-weighted baskets, which are important barometers for both Chinese and Singaporean policymakers.

[Image: TLvZ1os.jpg]

China’s resilience

The US trade policy is putting considerable strain on China. Moreover, after the USA recently renegotiated trade agreements with Mexico, Canada, and South Korea, and amid de-escalating trade tensions with Europe, the US trade stance toward China could harden further. China’s patience is thus likely to be additionally tested. If its policymakers proceed cautiously, as in 2018, risks of instability should be limited and the expansion can be extended. However, any aggressive currency policy, credit easing, or foreign policy would be destabilizing.

Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
  eToro Trader: How to Build Your Trading Strategy crytocure 0 105 26-06-2019, 03:37 PM
Last Post: crytocure
  Derivative Guide: Choosing the Right Contract Based on Trading Strategy crytocure 0 66 18-06-2019, 10:53 AM
Last Post: crytocure
  Blockchain 50: Billion Dollar Babies crytocure 0 74 15-06-2019, 10:44 AM
Last Post: crytocure
  UNIVERSITY STUDENTS CHOOSE ONE DOLLAR OVER ONE BITCOIN crytocure 0 114 25-05-2019, 03:24 PM
Last Post: crytocure
  How Much is the Ideal Amount of Crypto Assets to Hold in your Investment Portfolio? crytocure 0 81 09-05-2019, 03:05 PM
Last Post: crytocure
  Will The Raising Institutional Investment Bring Back Glory Days For Cryptos? crytocure 0 64 25-04-2019, 03:12 PM
Last Post: crytocure
  Hot NEWS AA UNION CAPITAL INVESTMENT SOLUTIONS & PRODUCTS - Foreign Exchange Milner 0 105 06-04-2019, 07:32 PM
Last Post: Milner
  How to Use Pair Trading as a Crypto Investment Strategy crytocure 0 137 06-04-2019, 12:55 PM
Last Post: crytocure
  Blockchain Still Receives Less Investment than AI and IoT crytocure 0 190 04-04-2019, 02:43 PM
Last Post: crytocure
  Hot NEWS AA UNION CAPITAL INVESTMENT SOLUTIONS & PRODUCTS - Alternative investments Milner 0 105 01-04-2019, 01:58 AM
Last Post: Milner



Users browsing this thread: 1 Guest(s)