Trump first, America second

Thursday, 23 February 2017

We expect the Fed to gradually close the monetary spigot despite the fact that Trump’s fiscal stimulus plans are about to disappoint. The ECB will be more reluctant to tighten policy due to political uncertainty and doubts about the sustainability of the euro. Therefore, a further weakening of the euro is in the cards although we would not be surprised by a temporary upward movement. 


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