USD: trade agreements are good news for risk assets – ING

Variable rental markets are contributing upwards around the world after the news that President Trump has announced a commercial agreement between the US and Japan, says Chris Turner, an Ing currency analyst.

The price action has been poor

“The agreement is presented as a ‘win-win’ in the sense that US tariff I would invest in the US under the direction of President Trump.

“In other places, we notice that industrial metals continue to recover and that the terms of exchange are increasing for currencies such as the Australian dollar, the Brazilian real and the South African Rand. These currencies also act as a coverage in the event that the president of the Fed, Powell, is dismissed and the raw material sector is seen as a coverage against inflation in case of inflation in case of inflation From Fed. This trend could have continuity. “

“In terms of the great dollar, the price action has been poor. This week’s losses could somehow represent a recovery with respect to some lower yields in the United States last week or simply represent a re-assignment of investors out of the US existing June.

Source: Fx Street

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