-
Sell US Dollar as Trade Truce Won't Stop Fed Rate Cuts, Funds Say
The U.S.-China trade truce hasn’t been enough to shake out one favorite trade: shorting the dollar. The agreement has done little to shift overall market pricing for Federal Reserve interest-rate cuts, which means markets will keep selling the greenback, according to Aberdeen Standard Investments. Should the U.S. and China eventually reach a full-fledged trade deal, the greenback will lose appeal as a haven, AMP Capital Investors Ltd. says. The dollar has weakened about 2% from this year’s high in May after the Fed flagged it was open to lowering borrowing costs for the first time in more than a decade. Funds ... (full story)