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  • US Dollar Safe Haven Status Under Threat: DZ Bank's Marten

US Dollar Safe Haven Status Under Threat: DZ Bank's Marten

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Bloomberg Apr 15 21:05 · 16.5k Views

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  • 00:00 Let's just talk about what's driving the dollar weakness over the past several months, What's behind it?
  • 00:04 What are the number one pillars of that trade at the moment?
  • 00:08 I actually think that the the narrative has changed a bit if we look back.
  • 00:12 So we start, it started, really started off
  • 00:14 with the realization that Trump was going to make good on his promises to introduce harsh terrorists almost right away.
  • 00:19 So that
  • 00:20 dampened, you know, economic sentiment that raised fears in March of a Trump session.
  • 00:25 More rate cuts were being priced in from the Fed and that drove the dollar lower initially.
  • 00:30 I do think that the latest bout of dollar selling that we have
  • 00:33 I've seen has a bit of a different flavor to it.
  • 00:35 And I would say that
  • 00:36 for the first time in a very long time, the
  • 00:38 safe haven status of the US dollar is actually under threat.
  • 00:42 I think
  • 00:42 you know that we have seen this before, that people talk about it, but my feeling very much is that
  • 00:47 it has never been quite as serious as it is right now.
  • 00:51 And this really shows in the market reaction.
  • 00:53 You know, we had a bit of a push back or take back on terrorists recently.
  • 00:57 It has calmed the market down, but we haven't seen the dollar rally response
  • 01:01 in a relief rally, which one might have might have expected otherwise.
  • 01:04 And I I think that really goes to show how much damage has been done in recent weeks here.