Some thoughts on the USD from Credit Agricole (this via Bloomberg)
US dollar selling being driven mainly by concerns surrounding the protectionist stance adopted by the U.S.
- duties on imported solar panels and washing machines could weigh on global trade, growth, and possibly start a trade war
Selling magnified ahead of Trump speech in Davos
Also concern about early end to easing by the ECB
- European economic data continues to be solid
- Minutes show hawkishness
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While CA don't specifically ask, it seems to me there are two points at which the USD could well show a bit of life:
- After Trump's speech
- After the ECB
Thoughts welcome!
