CRU: “Phase I” Trade Deal Raises Downside Risk to the Dollar

By CRU Senior Cost Economist Ross Cunningham, from CRU’s Economic Outlook

Political uncertainty equals big losses for Americas currencies. During the latter half of 2019, currencies in key South American economies have lost significant ground against the dollar. Since these economies depend on commodity exports for their growth, the negative effects of the trade war on Chinese import demand, as well as on global growth prospects overall, were already in place before political unrest flared.