Some food for thought on the next possible direction for Trump’s trade shake up

ING talk about trade in one of their latest notes;
Will the White House take their trade war into the currency arena?
One of the bigger risks specific to FX markets in the near-term is whether the US administration chooses to take its trade clampdown into the currency arena. We’re expecting the US Treasury’s FX report anytime now – and we note in our preview how officials could technically label Thailand a ‘currency manipulator’.
Doing so, in our view, would put additional pressure on trade surplus countries – such as Germany, Japan and China – to stay clear of any policies that depress their currencies, which naturally lends itself to a weak USD (and strong EUR, JPY and CNY) trading environment. And under this backdrop, we feel the trade-weighted US dollar could still fall another 5-10% over a multi-year period.
That’s a fair call about the direction Trump could take next, and one that will bring further volatility direct to FX markets.
Ryan Littlestone

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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