Analysis from Mizuho Bank on the steadily rising strains between the US and China
The bank is looking for further short term USD strength
- Says the action to ban WeChat will prompt further flows to haven assets
- absolutely positive for the dollar
- negative for China
- the ability of China to retaliate in kind is somewhat more limited compared to the U.S., at least in the short term
- trade-sensitive currencies may weaken as tech tensions escalate
(From a Friday note from Mizuho)
