Download the Quarterly Outlook now to read our #SaxoStrats’ analysis in full and discover what this quarter holds in store for macro, equities, forex, fixed income, commodities and more.
Q4 2019 Outlook:
The Killer Dollar
Q4 2019 Outlook:
The Killer Dollar
Trump’s calls to weaken the US dollar continue to gain bipartisan support. But will taking down the mighty dollar cure an ailing global economy, or put the final nail in its coffin?
When history is written, 2019 will most likely be remembered as the year that kicked off a global recession.
Monetary policy has reached the end of a very long road and proven a failure. And with fiscal policy coming too slowly to offset structural weakness, there is only one tool left in the box for the global economy: lower the price of global money itself – the US Dollar.
Enter President Trump. He’s called for a weaker USD and, if his patience with Powell’s Fed runs out, could activate the 1934 Gold Reserve Act, which gives The White House broad powers to intervene by selling dollars to buy foreign currency.
US policymakers of all stripes are increasingly warming to active policies to reduce USD strength, but is it a case of ‘be careful what you wish for’?
Download the report now to get our analysts’ take on how markets will be impacted by the Killer Dollar.
Q4 Outlook: USD liquidity – It’s going to get worse before it gets better
Christopher Dembik
Head of Macro Analysis