Trade War Realities Weigh More Heavily

The Australian dollar versus the Japanese yen (AUD/JPY) is back to trading at levels last seen in the immediate wake of the financial crisis. A declining AUD/JPY helps to expose the intensifying risk-off sentiment in financial markets.

An Inescapable Truth In June, 2018, I made the following claims and observations (with fresh emphasis): “…at the end of the day, Trump is determined to drive the U.S. trade deficit as close to zero as possible. This cannot happen without some substantial economic disruptions. To the extent the market refuses to price in these … Read more