HSBC: Watch The Trend; Dollar’s Trump Gains Will Be Short Lived

The US dollar rally will fade out during the second half of 2017 has Donald Trump fails to live up to expectations, that’s according to HSBC’s global currencies research team.

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Since Donald Trump won the US presidential election at the beginning of November, the US dollar has been on a tear thanks to the belief that Trump will unleash a wave of infrastructure spending across the United States, pushing inflation higher. The Federal Reserve is already committed to higher rates, when this view is coupled with Trump induced inflation, you have...