13
Jul
The US dollar erases its post-election rise: -5.3% YTD
Broken promises sent the dollar down. The euro benefits from strengthening fundamentals. The yen will not appreciate without inflation. Widening of the CHF-EUR spread.
Key points
- The US dollar was hit by negative economic surprises and broken promises from President Trump on Investment and Fiscal policy
- The « trade-weighted » USD is down -5.3% since the beginning of the year
- In contrast, economic and political factors support the euro
- The euro is up almost +10% in six months against the US dollar
- The yen will not appreciate without growth and inflation
- 700 billion to finally weaken the Swiss Franc : the yield spread has to reach 0.75% in order for the Swiss Franc to weaken
