How a U.S.-China Trade Deal Can Impact Currencies

The transcript discusses the potential impacts of a trade deal between the US and China, focusing on how it could ease trade tensions and affect global trade dynamics. It also highlights issues related to auto tariffs, particularly concerning Europe, and how these could influence global trade assumptions for 2019. The discussion extends to monetary policy, suggesting that a more optimistic global trade outlook might prompt central banks to consider monetary tightening. Finally, it identifies opportunities for currencies that are globally cyclically correlated, which could benefit from dissipating trade tensions.

What impact does a trade deal between the US and China have on global trade?

How do auto tariffs affect trade relations with Europe?

What factors contribute to the optimism regarding global trade in 2019?

What are the potential implications of a more optimistic global trade outlook for central banks?

In what ways could global trade tensions dissipating benefit certain currencies?