Risk of trade war underestimated? - Rabobank

Ross J Burland FXStreet

Analysts at Rabobank explained that we stand on the edge of a potentially damaging global trade war, which many see as irrational.

Key Quotes:

"Indeed, markets are not pricing for it, partly because the irrationality seems to reduce the probability of this outcome."

"There are multiple interpretations of what ‘rational’ means for all actors involved."

"One can make the argument that the US and China are both acting rationally, while assumptions that our global system is rational may themselves be irrational! On that basis, the risks of trade wars may be higher than markets currently suggest."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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