‘Trump trades’ start to misfire as dollar weakens

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Trump trade bets are kept with a higher bond yield this year this year, as investors have a greater look at the economic consequences of the new US administration’s new trade war.

US Currency has slipped, and treasures have gathered since the beginning of January, with the expectations of the investor, which are planned by President Donald Trump’s plans. Trade Tariffs: And tax cuts are highly higher inflation and interest rates high.

“Despite what he feels if you really grow up at the beginning of this year, too much [Trump] The transactions did not work, “said Jerry’s Jerry’s Jerry’s Jerry’s Jerry’s Computer in Barclays. “It simply came to our notice then.”

Investors have been withdrawn from popular transactions, as the president’s tariffs have been less aggressive than many are afraid. But many also worry that the uncertainty of the termination of the termination of the termination can be damaged by the confidence in the US economy, undermining the protest market in the Russian economy.

The “average menu” of popular crafts, such as betting against the euro or Chinese Renminbi, did not reward investors this year, said Minier. “You continue to have reasons for the dollar [rally] To continue to be extended, at least so far these things have been removed, “he added.

Betting that Trump inflationary policy is both less space to reduce the federal reserve, to reduce interest rates and to be depressed with our commercial partners, helping a huge rally in dollars. The US currency received 8% against his peer basket, late September until the end of the year.

In December, the asset heads have taken a pure long dollar in December, according to CME currency futures contracts. But so far the US currency has slipped by 0.2 percent this year.

The expectations of higher inflation also helped 10-year treasury concessions that reverse prices, compared to January, at the end of 2023.

But they now fell by 4.53 percent, as the focus of the market has been afraid of inflation that the strong US economy can blink within the new president.

“There is an underlying fear that growth can slow down,” said Thorsten Slock, the chief economist of “Apollo” investment company with a “potential certain growing consequences” commercial war.

The bond market “falls between fear that inflation can be a little higher due to the trading war and fear that the US growth or global growth can be slow,” said JPMorgan assets’ main global slave.

This month, Trump was killed at the eleventh hour on the threats to impose tariffs in Mexico and Canada, providing two countries with a 30-day delay. But he advanced additional import tariffs on China and on Friday the President said that the president could also have new treasures to resolve the United States.

He also announced a 25% tariff for 25% tariff.

Developing markets, which were widespired by a particular victim of the trade war, also had the expectations in recent weeks, after 2024 of which some foreign currencies touched upon multi-year-olds.

Since the start of the second term of Trump last month, Chili peso has acquired more than 3 percent, and the Brazilian real is more than 6 percent more than 6 percent more than 6 percent.

The Bank’s bank’s strategists have become positive in the emerging markets that the higher dollars, which has been the strongest for the effective exchange rate since 1985.

“It simply came to our notice then.

“It simply came to our notice then. Of course, it could, but for now, given the last and forth, we have children in fair quantities. “

Investors note that the developing market has a limit to the loan costs to support economic growth, and the aggressive exchange rate has increased in recent years to solve inflation. Last week, Mexico, the Czech Republic and India have dropped the pace.

Real interest rates, which are adjusted for inflation, are also greater than the developing world than in the United States, which is beneficial to earning dollars and invest in developing markets.

“No matter how much you pieces or dice, local currencies have become very, very cheap, even if the dollar does not weaken here, and it just stabilizes for cheap prices.