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Tuesday, April 03, 2018
World market deviating from USD
ANBOUND

The policy uncertainty of the Trump administration and the instability of the U.S. economy have made the international market changing its view of the U.S. dollar and the market has chosen to temporarily deviate from the currency to avoid risks. The share of the U.S. dollar in global currency reserves has continued to fall, and the same happens to the U.S. dollar exchange rate as well. The main reasons are is that Trump's policy has brought uncertainty, where no one knows what he would want to do and no one is sure where he will go wrong. Secondly, due to the U.S. tax reform and financial pressure, the possibility of a large number of additional US Treasuries will be huge; this will cause the U.S. dollar to be more volatile. Finally, the U.S. economy is still in uncertainty. The best choice in the world market now is to try to deviate from the U.S. dollar temporarily.

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