The U.S. Dollar Gets an Injection of Political Risk
- ‘Not sure serious analysis is possible’ at this point: Juckes
- Fiscal outlook obscured with focus on migration, trade curbs
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Currency traders have long been used to analyzing political risk -- just not so much when it comes to the U.S. dollar.
The greenback has been rattled this week by political concerns, spurring debate over the long-term implications of Trump administration policies and their impact on demand for assets denominated in the world’s reserve currency. It’s a relatively unfamiliar dynamic for those accustomed to looking at bond-yield differentials when attempting to gauge the dollar’s outlook.