AAUC (AA UNION CAPITAL) Investment strategy - US dollar stability

Results 1 to 3 of 3

Thread: AAUC (AA UNION CAPITAL) Investment strategy - US dollar stability

  1. #1
    Senior Member Robert Edwards's Avatar
    Join Date
    Sep 2015
    Posts
    273
    Thanked: 0

    Default AAUC (AA UNION CAPITAL) Investment strategy - US dollar stability

    AAUC (AA UNION CAPITAL) Investment strategy - US dollar stability


    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.



    Chinas 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. Chinas 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.

    Find out more in Blockchain Powered - AA UNION CAPITAL

  2. #2
    Junior Member
    Join Date
    Jan 2019
    Location
    Honduras
    Posts
    1
    Thanked: 0

    Default сайт


  3. #3
    Junior Member
    Join Date
    Jan 2019
    Location
    Benin
    Posts
    1
    Thanked: 0

    Default сайт


Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Join us