US dollar looks vulnerable in protectionist environment, euro to benefit - ANZ

Analysts at ANZ explained that the euro again shrugged off last week’s threat from Trump's auto tariffs and strengthened in the face of equity market weakness. 

Key Quotes:

"That could possibly reflect the fact the US Treasury is drawing up curbs on companies with 25% Chinese ownership from buying “industrially significant technology” in the US. Washington’s trade policy seems to be becoming increasingly protectionist, which if confirmed could begin to affect capital flows."

"Given the US’s large current account deficit (2.5% of GDP in Q1) and rising US budget deficit (forecast at 4.0% of GDP this year), the USD would be vulnerable in that environment."