One Conclusion From Trade Tensions: the Dollar Is a Likely Loser
- Lessons of U.S. protectionism since ’70s guide Goldman’s Pandl
- Deutsche’s Slok sees risk of dimmed foreign confidence
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For investors struggling to handicap whether U.S. President Donald Trump will stomach a full-blown trade war, some analysts boil the risks down to this: The dollar stands to lose.
Greenback bulls should enjoy the currency’s seven-week rally while they can, say Goldman Sachs Group Inc. and Deutsche Bank AG. Should a spiral of retaliatory tariffs ensue, the threat is diminished global growth, quicker U.S. inflation and an uncertain end game that undermines global confidence in American assets, in Deutsche Bank’s analysis.