- Analytics
- News and Tools
- Market News
- Currencies: The last thing the world needs is a stronger USD – Nordea
Currencies: The last thing the world needs is a stronger USD – Nordea
Currencies: The last thing the world needs is a stronger USD – Nordea
FXStreet reports that analysts at Nordea note that with the massive issuance upcoming in the U.S., either the Fed will have to buy almost everything or else the USD needs to weaken to attract foreign purchases of U.S. Treasuries again.
“Essentially no one wants a strong USD currently, but that doesn’t necessarily mean that it will weaken. A stronger dollar generally tightens financial conditions outside of the US, which is kind of counterintuitive since weaker currencies outside of the US in principle should lead to a competitive advantage.”
“Some reasons why a strong USD is bad news for growth are that EM countries have borrowed in USD, firms who have borrowed in dollars see debt burdens grow in local currency and the financial sector also empirically becomes less keen to lend out when the USD is strong.”
“The last thing the world needs right now is an even stronger USD; in such case, we wouldn’t rule out a new Plaza accord like attempt to weaken the USD in a coordinated way. Everyone’s in the same boat now.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
