- Analytics
- News and Tools
- Market News
- Dollar last year reached a long-term high and has now begun a period of depreciation – MUFG
Dollar last year reached a long-term high and has now begun a period of depreciation – MUFG
The Dollar remains broadly unchanged in the FX markets with no obvious macro news to drive the markets ahead of the key US inflation data. As debt ceiling talks see no progress, economists at MUFG Bank expect the greenback to remain vulnerable.
Debt-to-GDP is trending higher and is unsustainable
“We see a short-term solution as the most plausible at this stage. A suspension of the debt ceiling until 30th September would allow discussions to take place over the debt ceiling and the budget simultaneously (but separately) and a budget agreement for next year could at least be viewed in the context of what is going to be required for longer-term fiscal policy to stabilise debt in GDP terms.”
“What remains clear and in need of addressing is that under current legislation, debt-to-GDP is trending higher and is therefore unsustainable. The problems are vast even beyond the resolution of the debt-ceiling standoff and reinforce our longer-term US dollar view that the Dollar last year reached a long-term high and has now begun a period of depreciation.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
