Currency Market Calm Seen at Risk as Trade War Concerns Escalate
- Volatility to rise should tariff threats become reality: ING
- Fresh focus on U.S. Treasury currency report after trade spat
Will There Be a Trade War?
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Global currency markets have remained remarkably sanguine even as mounting U.S.-China trade tensions roiled equities. How long can that uneasy calm last is the question strategists are now grappling with.
Even with U.S. President Donald Trump and Chinese officials volleying proposals to impose tariffs and counter-tariffs, the J.P. Morgan Global FX Volatility Index is on course for a third weekly decline. But the foreign-exchange market could quickly lose its poise and currency swings could widen should the threats escalate into actual implementation of the tariffs, according to analysts.