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
Apple pursues an early harvest strategy that focuses on extracting healthy profits from the Mac, iPhone, and iPad.
Monica McNeil

2017-05-01 09:45:00 Monday ET

Apple pursues an early harvest strategy that focuses on extracting healthy profits from the Mac, iPhone, and iPad.

Apple now pursues an early harvest strategy that focuses on extracting healthy profits from a relatively static market for the Mac, iPhone, and iPad, all of

+See More
Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2020.
Andy Yeh Alpha

2020-02-02 10:31:00 Sunday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2020.

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement

+See More
Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens and many other drug distributors.
Peter Prince

2018-06-29 11:41:00 Friday ET

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens and many other drug distributors.

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens Boots Alliance, CVS Health, Rite Aid, and many other drug distributo

+See More
AYA free finbuzz podcast channel on YouTube March 2019
Andy Yeh Alpha

2019-03-31 11:40:00 Sunday ET

AYA free finbuzz podcast channel on YouTube March 2019

AYA Analytica free finbuzz podcast channel on YouTube March 2019 In this podcast, we discuss several topical issues as of March 2019: (1) Sargent-Wallac

+See More
A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice.
Laura Hermes

2018-10-05 10:38:00 Friday ET

A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice.

A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice. Her advice encompasses several steps toward better financial literacy

+See More
President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.
Apple Boston

2018-05-25 07:30:00 Friday ET

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America. This new round of tariffs

+See More