For decades, Washington defended the greenback in word if not always in deed. Now, with Trump abandoning the script and investors scrambling to hedge, the USD’s overvaluation is being exposed – and Asia looks set to drive the next wave lower.
In stark contrast to his predecessors, Trump has a radically different view of the power and responsibility of the US. At the very least, the return of the Reagan rollercoaster is now likely.
In the ninth and final instalment of my guide to the financial markets, I am looking at stock investing, the threat to the dollar dominance and the challenges of low bond yields.
Foreign exchange markets are notoriously unpredictable. But it now seems certain the Euro will be significantly stronger relative to the dollar at the end of this decade than it is today.
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