Weaker Dollar & 145% Tariffs: Double Trouble for US Consumers

Capital_Insights
04-11

Former US Secretary of State Blinken commented on the tariff policy: The world will no longer trust the United States, which is not good for us.

A weakening US dollar and 145% tariffs will be a double whammy for US consumers.

Why is the $USD Index(USDindex.FOREX)$ 's downward trend so important for $Gold - main 2506(GCmain)$ investors?

Because of its inverse correlation with gold price Indeed, when the world's reserve currency is doing poorly, gold plays its role as store of value

Below: $DXY VS M2-adjusted gold (inverted scale)

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The DXY is currently revering towards its Purchasing Power Parity, after years of overvaluation.

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The DXY is now breaking its multi-year suport.

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HKD Strengthens: Can China Stocks' Rally Continue?
On May 7, the Governor of the People's Bank of China, Pan Gongsheng, announced a 0.5 percentage point RRR cut, injecting approximately 1 trillion yuan of long-term liquidity into the market. A package of policies to support financing for SMEs will be launched soon. Chinese assets surged in response to these favorable policies. Some believe that Chinese concept stocks are still at low levels, as major tech stocks remain undervalued. Are you bullish on China stocks continued rally? Are they still undervalued or not? How will stronger HKD affect HK stock market?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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