Australian Dollar

Macquarie: US dollar to the moon

David Llewellyn-Smith
Tuesday, 15 May 2018
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From the fantastic Viktor Shvets of Macquarie:

US$ and its discontents: Liquidity, CA deficits, deflation & EMs

  • Are we seeing the beginnings of a much stronger US$? Key investment risk.
  • The direction of US$ does not just depend on spreads or even supply of US$ but on whether deflation ultimately proves to be a stronger force.
  • We remain deflationists at heart; hence we always worry that US$ might be too strong. However even extreme weakness is deflationary. Watch DXY

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.