Investors rush to the dollar as a safe haven after Trump's customs fees

There is a golden opportunity to earn profits from the purchase of the dollar, even after the customs duties imposed by US President Donald Trump have led to the high value of the green currency. Of the transactions expected by the two banks, Goldman Sachs sees that the dollar exceeds the level of a euro draw, while JP Morgan expects the US currency to reach about 1.5 dollars for the first time in the generation. Most of the asset categories were a decline after Trump announced the imposition of customs duties on Canada, China and Mexico from Tuesday, which made the dollar the largest beneficiary. Although many traders have previously prepared for these fees since Trump’s inauguration, the first mitigating tone he has shown to China has reinforced expectations that it may be of escalation, which led to a drop in the strength of the dollar for a short time. But these expectations spread quickly. “Customs have a clear and direct impact on exchange rates, unlike other assets categories,” says Dominic Wilson, strategies, and note, with reference to the risks of the euro decline by 8% and 10% as international customs duties. Read more: The dollar is jumping and the stocks fall after Trump’s implementation of its threats to impose the US dollar intentions and inflation increases the attractiveness of the dollar with the support of the expectation of the trade war US inflation, leading to high interest rates, as well as damage to foreign economies, which are more than a safe haven in times of risk. The dollar increase on Monday has driven the Canadian dollar to its lowest level in more than two decades, while the Mexican Bico, the euro and the Australian dollars have dropped to low levels that have not been recorded for years. “The biggest impact on the foreign exchange market could be the result of the escalation of risk of avoiding growing anxiety over global growth,” says Valentin Marinov, head of foreign exchange strategy for the Group in Credit Agricul, adding that it will increase the strength of the dollar. He said: “In addition, the World Trading War can lead to the larger gap between the United States and its commercial partners, supporting the dollar rise,” he said. Keeping a long time in dollars has recently become one of the most popular offers in global markets. According to the data of the Justice Commodities Trade Committee, collected by “Bloomberg”, the financial leverage funds are more optimistic about the currency than they have been since September 2018. The Safe Haven offers recommend ‘JP Morgan’ to also optimistic about the dollar and yen centers against the currencies of economies targeted with customs domains, such as the Canadian dollar and the euro. The bank said the imposition of customs duties with 25% could push the Canadian dollar to 1.58 for the US dollar, while the dollar could reach 23.5 against Mexican Bico, and 7.37 against the outer yuan. Although Eurozone survived Trump’s recent customs duties, he confirmed that the fees against the European Union will certainly happen. Goldman Sachs believes that the dollar will continue its strength against other currencies, such as the Chinese Yuan, as it strengthens its position as a safe haven currency of the attraction. The bank expects the local Yuan to end up until the 7.5 level against the dollar. As for the ‘City Group’ strategy, they look more careful because they expect the dollar to rise in the short term, but they have pointed out the possibility that the trend’s reflection at the beginning of the markets assesses the impact of customs duties on the largest economy in the world. The strategic opinion of Bloomberg due to the presence of single indicators that traders still see the possibility that Trump -duty duties are short -the dollar has a large area to rise when commercial confrontations are long. Garfield Reynolds, a strategy in ‘Markets Live’ on his part, said Ken Bing, head of the Investment Strategy for Asia in the Wealth Division of ‘City Group’ in Hong Kong: ‘If the economic consequences begin to affect the United States, things could start to reflect. I prefer to be a buyer of fluctuations at the present time instead of betting on a specific direction. ‘ Canada has already responded to the imposition of 25% of customs duties on the United States after Trump’s first step, while Mexico and China promised to respond. At the same time, the European Union promised to ‘react firmly’ as the United States impose customs. Eric Nelson, Macro’s strategy in “Wales Vargo”, said the markets still reduce the possibility of drafting customs duties in a serious way, pointing out that the Bloomberg index of the dollar could rise by another 3%, exceeding the highest levels in 2022 as Trump still escalates threats. He added that the imposition of permanent restrictions by 25% on Canadian imports could pay the exchange rate to 1.7 Canadian dollar against the US dollar, while the Mexican and Yuan bicoes are expected to fall.