US: Deeper political risks will keep investors wary of chasing USD upside - ING

Viraj Patel, Research Analyst at ING, suggests that one of the reasons they have cited for their strategically bearish USD view in 2018 is the markets’ relative under-appreciation of the fragile US political backdrop in a mid-term election year.

Key Quotes

“These political risks lie deeper than the noise around Michael Wolff’s ‘Fire and Fury’ book; a change in America’s status in the world political order may have long-run economic consequences for a country reliant on ‘the kindness of strangers’ to fund its twin current account and fiscal deficits. Such structural risks means that we remain wary over chasing fleeting $ upside.”