Dollar at Crossroads as Tariffs, Growth Path Evolve: FX Moment

Description

The weakening path recently observed in several US economic surveys (see February services PMI or consumer confidence) has yet to be validated by a sustained turn in the core economic news flow. Yet if confirmed, this could imply a more bearish dollar outlook than envisaged by many at the start of the year. In this episode of FX Moment, Bloomberg Intelligence’s chief G-10 FX strategist Audrey Childe-Freeman and Valentin Petrescou, senior portfolio manager at Lombard Odier Investment Managers, discuss the US dollar outlook amid an ever-evolving tariff narrative, with Petrescou arguing that a trade war scenario may not be all that dollar bullish in the current economic cycle. The two also talk about the merits of yen exposure in FX diversification strategies and conclude that a euro-dollar parity scenario is fading.