Trading a Currency War: Stay Clear, Buy Gold, Deutsche Bank Says
- U.S. FX intervention may spur retaliation from other nations
- Avoid ‘direct conflict’ in the euro and the yuan: DB’s Ruskin
Photographer: Scott Eells/Bloomberg
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Should U.S. foreign-exchange policy spur a global currency conflict, Deutsche Bank AG sees gold as the ultimate victor.
The possibility of U.S. FX intervention has created some buzz among Wall Street analysts after President Donald Trump took aim at China and Europe this month, saying they’re playing a “big currency manipulation game.” A U.S. attempt to weaken the dollar -- a step it hasn’t taken since 2000 -- could prompt other nations to combat the intervention, sparking a “true currency war” probably involving the yuan and euro, according to Deutsche Bank strategist Alan Ruskin.