• Betting on further dollar strength might be akin to "dancing on a volcano" - Commerzbank

Notícias do Mercado

7 agosto 2018

Betting on further dollar strength might be akin to "dancing on a volcano" - Commerzbank

Betting on further dollar strength might be akin to "dancing on a volcano" as recent gains have come from investors clamoring for U.S. assets, say Commerzbank analysts. A WSJ measure of the greenback is up 3.3% in 2018, with the Nasdaq and the S&P 500 on Monday notching their second-highest and third-highest closing levels respectively. That's despite rising government debt that will weigh on the economy and the dollar in the medium-to-long term, Commerzbank says. Meanwhile, there have been no new signals suggesting dollar strength, they say. Empirical data show periods of high twin deficits were initially positive for the dollar in the past, but led to weakness later, Commerzbank says. - via WSJ

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