MUFG says the US greenback drop is short-term – nonetheless nicely supported into year-end and past

US yields and greenback dropped on Monday on the information that Trump had nominated Scott Bessent as Treasury Secretary.

The reasoning is Bessent has indicated “a doable extra balanced method” to commerce tariffs. That is an fascinating narrative. Of us love a narrative. I would counsel the strikes have been extra as a consequence of a cascade of “get me out whereas I can get out” orders (wea, and never some well-reasoned argument on probably much less strict tariffs. However, let’s go along with the narrative for now.

MUFG says regardless:

• greenback depreciation is a brief correction after Friday’s stable good points vs euro
• the prospects are a US financial system performing higher than others, particularly the EU
• and this divergence will maintain the USD “nicely supported into year-end and past, into the primary quarter of 2025.”

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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