The tectonic ruptures in geopolitics triggered by Donald Trump are reverberating in the currency market, just as they did nine months ago with the trade war. This week, the dollar hit 1.20 per euro, making trips to the United States, bourbon, and Fender electric guitars cheaper. The abrupt trend — a drop of nearly 3% in just a few days — looks set to continue, as it has little or nothing to do with the economic cycle: it is the financial world’s response to the global order proposed by the U.S. president, whose first commandment (or second, depending on the day) is to limit risk.
Why Trump isn’t worried about a weaker dollar as markets (and the ECB) grow uneasy
The rise in the euro and gold reflects a structural outflow of capital, even if it could end up stimulating the US economy
