China/US trade tensions to re-emerge, could lead to renewed USD support - Rabobank

Felipe Erazo FXStreet

Analysts at Rabobank believe that USD strength has repeatedly confounded market expectations since early last year and there are reasons to suspect that this may continue for a while amid US-China trade tensions.

Key quotes

"The fact that USD strength has repeatedly confounded market expectations since early last year begs the question as to whether the factors that are underpinning the USD have undergone an adjustment in recent years."

"We argue that there have been changes in the market dynamics behind the USD."

"Consequently, we would suggest that there is a strong chance that USD strength is likely to continue perplexing the market at least over the next year or so."

Author

Felipe Erazo

FXStreet

Born in Colombia, Felipe Erazo is the American Session Manager at FXStreet. He has been studying journalism with a degree in social communication at the Universidad de Chile.

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