fxs_header_sponsor_anchor

News

US economic activity is a USD headwind – BBH

The US Dollar (USD) is firmer across the board and the US yield curve (10 minus 2-year Treasury yields) steepened, BBH strategists note.

USD remains bullish in short term

“The narrative is financial markets are positioning for a Trump win ahead of the November 5 election. Donald Trump plans to slash taxes and raise import tariffs if elected. This combination is inflationary and could force the Federal Reserve (Fed) to keep policy restrictive for longer.”

“A loose fiscal/tight monetary policy mix is generally positive for a currency and supports higher bond yields. Additionally, expansionary fiscal policy if not accompanied by stronger growth could worsen the US fiscal backdrop and raise the term premium on longer term Treasury yields.”

“We remain cyclically bullish on USD, but in the near-term softer US economic activity is a USD headwind.” 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.