Global Themes

Trump and China cause a stir in the market

  • Lack of confidence in 'Trump Trade' causes US dollar to weaken
  • Chinese central bank looking to improve cross-border yuan use
  • French Think-tank says it’s ‘now or never’ for Europe


Lack of confidence in 'Trump Trade' causes US dollar to weaken
The US dollar faced a troubled start this week as confidence in the Trump administration’s ability to boost the US economy continues to decline. 

On Monday, the pound rallied against the dollar to a 7-week high, while the US dollar weakened against most of its G10 peers. Trump withdrew the healthcare bill over the weekend, strengthening the reversal of the Trump Trade sentiment and forcing investors to pull out of the country’s currency.


Chinese central bank looking to improve cross-border yuan use
On Monday, China’s Central Bank outlined plans to focus on improving the infrastructure and policy framework for cross-border use of the yuan. 

The People’s Bank of China released this new policy on its website, seeking to reaffirm the yuan regime and steadily push forward with its currency’s convertibility. China will look to enhance their role in control of the yuan’s accessibility by promoting investment and financial transactions. The change in policy is believed to be a result of the country’s poor growth and strengthening of the yuan at the start of 2017.


French think-tank says it’s ‘now or never’ for Europe
Institut Montaigne, an independent think-tank, published a report claiming that the current geopolitical environment within the Eurozone is extremely dangerous.

The leaders that will be elected in the French and German elections this year will play a pivotal role in the shaping of the future trade bloc. Trade relations with the US and UK were a key feature of the report, stressing that poor relations and negotiations in the next five years may have significant and lasting effects for decades to come.

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