It’s 1980s All Over Again for FX Desks Looking at Trade Flow
- Trump’s FX jawboning makes traders vulnerable to export data
- China’s trade surplus with the U.S. slips to seven month low
Why a Too Strong Dollar Will Impact U.S. Momentum
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Currency traders accustomed to analyzing the Fed’s dot plot and monthly U.S. jobs figures to divine the direction of the dollar are having to learn, or in some cases re-learn, a forgotten skill: how to scrutinize trade data.
It’s been decades since investors gave significant thought to the data amid easing trade tensions. What’s more, the flows represent a drop in the ocean for a currency market where about $5 trillion exchanges hands every day.