The News
The dollar plunged to a three-year low, as a US trade war and threats against the Federal Reserve drove “Sell America” trades.
President Donald Trump’s renewed push to fire the Fed chair, in particular, has undermined the haven status of US assets, resulting in a combined stock, currency, and bond weakness not seen since 1981, according to Sherwood News. Pension funds worldwide are reassessing whether to keep betting on the US, while Chinese state investors are pulling back from US private equity. Traders have flocked to gold, which hit a fresh record Monday, as well as German bonds. The “exorbitant privilege of the US,” Commerzbank’s chair said, “may not be carved in stone.”
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