Trump the moron

In China, Currencies on 03/08/2019 at 3:00 pm

Trump wants a weaker US$: Another reason for Trump to be upset with UK.

But as Seema Shah, chief strategist at Principal Global Investors said his plans to impose a fresh 10% tariff on another US$300bn of Chinese products will result in a further strengthening of the US dollar – already at a two-year high before the tariff announcement – “as investors inevitably rush for its perceived safety”.

“Furthermore, US tariffs will weaken China’s economy and others that are intricately tied to China’s supply chains, putting downward pressure on their currencies and upward pressure on the US dollar.

“The reality is that the US has a far greater ability to control its own currency than Europe, which is beset with problems including Italian instability, an unbalanced economy across the bloc and fiscal tightness. At some point, the Trump administration may realise that the most effective and beneficial route to weakening the US dollar will be correcting the underlying fundamentals, not intervention.

“The quickest route to a cheaper dollar is ending the trade war”.


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