How the World Reacts to USD Weakness: Could EM double?

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Capital Wars: Killing The Dollar Softly

 

The 2014-17 ‘safe asset’ capital surge into the US dollar has peaked and is now cooling. Added to this, the Fed’s new excess inflation goal will surely encourage a still weaker US dollar, perhaps by 20-25%? By targeting their currencies and so cushioning a weaker US unit, Asian policy-makers will force adjustment on to the Euro and gold. But can the debt and deflation-prone Eurozone cope with a much stronger Euro? And, what will stronger gold (and liquidity) mean for the Emerging Markets?

 

 

 

See our latest published research, Global View - Capital Wars: Killing The Dollar Softly – September 2020

 

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