White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor optimism.

James Campbell

2018-08-13 12:39:00 Mon ET

White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Greenback appreciation reflects the fact that international capital continues to flow into the U.S. economy as the Federal Reserve accelerates its interest rate hike. Meanwhile, this dollar appreciation helps dampen commodity prices within healthy and reasonable bounds.

However, President Trump suggests in an earlier tweet that the strong dollar may put America at a competitive disadvantage. In fact, greenback strength can render U.S. export prices less competitive and so may exacerbate future trade deficits in the current account. In addition to these recent exchange rate gyrations, the Trump administration gradually reveals the precautionary motive behind the current trade war against China. This major trade dispute and its attendant measures shine light on the U.S. grand strategy that seeks to thwart China's economic rise as a global superpower.

It is plausible for the Trump administration to view China as an aggressive currency manipulator. As the Chinese renminbi continues to depreciate at a gradual pace, Chinese low-cost imports become more affordable to most American households. For these strategic reasons, the Trump administration needs to re-engage Chinese diplomats and economists in the next round of bilateral trade negotiations.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by 28 million programmers worldwide.

Joseph Corr

2018-06-04 08:38:00 Monday ET

Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by 28 million programmers worldwide.

Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by more than 28 million programmers worldwide. GitHub's

+See More

What are our proprietary alpha stock signals?

Andy Yeh Alpha

2020-09-11 10:22:00 Friday ET

What are our proprietary alpha stock signals?

AYA fintech network platform provides proprietary alpha stock signals and personal finance tools. In recent times, we have completed our fresh website up

+See More

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world.

Jacob Miramar

2019-04-13 14:28:00 Saturday ET

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world.

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world. In its recent public bond issuance prospectus, Aramco offers the

+See More

BAC chief investment strategist Michael Hartnett points out that U.S. corporate debt accumulation can cause the next financial crisis.

John Fourier

2018-09-23 08:37:00 Sunday ET

BAC chief investment strategist Michael Hartnett points out that U.S. corporate debt accumulation can cause the next financial crisis.

Bank of America Merrill Lynch's chief investment strategist Michael Hartnett points out that U.S. corporate debt (not household credit supply or bank ca

+See More

Uber seeks an IPO in close competition with its rideshare rival Lyft and other tech firms such as Slack, Pinterest, and Palantir.

Amy Hamilton

2019-03-13 12:35:00 Wednesday ET

Uber seeks an IPO in close competition with its rideshare rival Lyft and other tech firms such as Slack, Pinterest, and Palantir.

Uber seeks an IPO in close competition with its rideshare rival Lyft and other tech firms such as Slack, Pinterest, and Palantir. Uber expects to complete o

+See More

JPMorgan Chase CEO Jamie Dimon defends capitalism in his recent annual letter to shareholders.

Chanel Holden

2019-04-26 09:33:00 Friday ET

JPMorgan Chase CEO Jamie Dimon defends capitalism in his recent annual letter to shareholders.

JPMorgan Chase CEO Jamie Dimon defends capitalism in his recent annual letter to shareholders. As Dimon explains here, socialism inevitably produces stagnat

+See More