Goldman Sachs now with a heads up on the rising risk of USD intervention
Potential intervention to weaken the USD is a bit of a talking point around the place, although (IMO) it is a bit far fetched.
But, with the current administration in the US, who knows?
Anyway, GS chiming in (overnight news ICYMI). Goldman Sachs warned there is a growing risk the Trump administration will intervene to weaken the USD:
- a "low but rising risk" of a direct FX intervention
- "There have been a series of comments and policy actions from US administration officials and others that have helped put currency policy back into the spotlight"
Trump has been vocal about the low levels of the euro, yuan, yen …. and whatever else pops into his head. And, of course, trade wars mixed in to the picture. GS says US currency policy is
- "back into the forefront for investors … ,anything is possible"
Something to keep an eye on. Like I said (IMO) it is a bit far fetched but watch this space!