Analyst: The tariff debate has had a serious impact on the US dollar.
Jin10 data, June 12 - Felix Brill, Chief Investment Officer of VP Bank, stated that the tariff debate has had a severe impact on the US dollar. Investors have turned to favor European investments, which is beneficial for the euro. After a significant decline in the dollar, technical analysis indicates that the dollar will experience a consolidation. Given the high trade deficit in the US, the trade-weighted dollar is severely overvalued and susceptible to further depreciation. This deficit is closely related to the record levels of external debt. The higher the external debt, the harder it becomes to obtain additional funding. "Correcting this imbalance requires more attractive prices for US assets, which is primarily achieved through dollar depreciation," Brill said.