- The US dollar and the Treasury Department are being sold as President Donald Trump's trade war increases the risk of American assets.
- Investors are worried about Trump's policy changes and are moving money from US assets to classic safe shelters.
- The euro has hit a three-year high against the dollar and is benefiting from the “American cell” trend.
Dollars and Treasury are on sale on Friday President Donald Trump Trade wars increase the risk of American assets.
The US dollar index measures greenback against a basket of major currencies, but for the first time since July 2023, it fell below the key 100 level. The index has risen 2.7% over the past week, a year that is 7.6% lower to date.
Meanwhile, the Treasury's yields are rising. This means that the asset prices have fallen as the two metrics move in opposite directions. Financial Revenues for 10 Years Old It's about 4.45%, an increase of nearly 5 basis points.
Bond surges usually show higher interest rates – played a quick role Trump Most customs duties will be suspended for 90 days.
The Greenback and Treasury slump are important as they are considered safe assets that investors flock to in times of uncertainty. Treasurys are considered riskless.
In contrast, investors put money into classic haven assets elsewhere, such as the Japanese yen, Swiss francs and gold.
Some analysts have called “American” trade by selling dollars, finances and US stocks.
“Sell us” to leave “Ground Zero”
“The “Sell Us” atmosphere has become more prominent, flowing through a wide range of markets and into classic, safe inventory assets.
The sudden loss in the dollar shows that many investors are focusing on the idea that “Trump's passive suspension on tariffs is due to increased system risk and by moving capital from zero on the ground.” x Friday x.
nevertheless Trump pause Most tariffs for 90 days sent to the market A stunning gathering Wednesday, The profit was lost On Thursday, he immediately expressed investors' fears about the ongoing macro uncertainty.
The unusual pattern of rising long-term interest rates and sudden low stock prices suggests “generalized aversion to US assets in global financial markets.” Larry Summers, On Wednesday's X.
“We are treated by global financial markets like problematic emerging markets,” Summers writes.
The euro wins a three-year high against the dollar
The yen movement reflects investors' uncertainty as the currency traded about 146 through the uproar.
The deal suggests that the US policy flip-flops now demand a higher risk premium for the US asset market. ing, Thursday's notes. The dollar was trading yen at around 143 yen on Friday.
The extraordinary market movement comes amidst the unprecedented turmoil triggered by Trump's trade war, which shakes confidence in the central role of the dollar in the global financial system. Others are also doing it.
“A major component of homeostasis in US policy over the past few decades is attachment to the central role of the dollar. I think the Trump administration has that view, but that's very inconsistent in the way it practices.” France Inter Thursday radio. “What happened in recent days and weeks is contrary to US confidence in currency.”
However, this could be positive to develop the international role of the euro, Vilroy said.
ING's Turner writes that euro assets can earn profits if the “American theme” is fully spread.
On Friday, the euro reached a three-year high against the dollar.
Check out the latest EUR-USD movements here.