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US playing with fire over China trade
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Loading...The dollar continues to perform quite well. The US Surprise Survey recently passed in negative territory (positive since last October) as prices continue to rise. In fact, the data that emerges this week should prove that the CPI will reach 3% on an annual basis. Therefore, it is possible to expect further lowering of the yield, which should be positive for the dollar against the currencies of the emerging markets. Also, Washington's policy of an apparently encouraging capital flight from China is dangerous. Larry Kudlow, Trump's adviser, describes China as a "bad investment." The risk is that the weak performance of China and Asia is spreading across the Pacific. For now, this looks like the risk Trump is willing to take. With not very attractive alternatives on an international scale, the dollar index could expect it to reach 95.55 / 65
The EUR / USD remains at a low level looking at the 1.1500 / 1510 area, which is a great deal of support, but it can be pushed through the thin summer markets.
Source: Think.Ing
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