Trump threatens to weaken the Dollar in reaction to China currency manipulation.
Trump threatens to weaken the Dollar by using the same tactics as the PBOC, to manipulate their currency. He say’s that when China do this, it has a detrimental affect on their “competitive edge”.
He has also put sanctions on Russia, and Turkey recently amongst a string of other threats and Tweets the geopolitical climate gets worse and worse.
This means more and more investors are moving their funds in to US Bonds. This is driving the Dollar strength for these past few months. I can only expect more Dollar strength for the mid to near term. 3-6 months.
Traders are having to focus a lot more on fundamental analysis and also to react to these types of headlines. Tweets constantly coming from the White House, then the reactions from whoever the President is currently threatening. BREXIT is also a major concern for investors and traders. Italy is an issue and i have a sneaky suspicion that the Greece story is not over yet.
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