HSBC global head of FX strategy, David Bloom, continues to back the dollar
- A full blown US-China trade deal will be "game changer"
- Yuan will stay pretty stable and risk assets will rally
- Then you've got alternatives to the dollar
- But don't hold your breath (on a deal)
- In the meantime, the dollar will "power ahead"
- The dollar is the currency to own
I always love watching Bloom's interviews because of how candid and eccentric he can be. He's certainly a no frills kind of guy and this short clip accentuates that again.
He also goes on to talk about how USD/CNY made a move from 6.35 to 7.00 based on a 'political change' i.e. tariffs and how the big picture affecting both currencies is "all about the trade deal", not cyclical factors such as the economy.