I just wrote yesterday that we need to weaken the dollar. And now a decision is brewing 👇

The last time Donald Trump said that something was “too high” was in January 2017, right before his inauguration.

Then he said that the dollar was too strong.:

“Our companies can no longer compete because our currency is too strong. It's killing us.”

He later called the dollar's strength “a huge burden for American businesses.”

Trump's Logic

Trump is well aware of the impact of a strong dollar and high interest rates.

A strong dollar:

• Exports are becoming more expensive.
• Reduces the competitiveness of American companies.
• Puts pressure on corporate earnings.

High stakes:

• Inhibit economic growth.
• Complicate debt servicing.
• Restrict access to liquidity for businesses.

And it's the same logic: a strong dollar and high interest rates are stifling the economy.

What happened next?

After his remarks in 2017, the dollar began to fall significantly, which became the catalyst for one of the most important macroeconomic movements in recent years.

This led to an increase in risky assets: stocks, bitcoin, raw materials — everything went up 😌🚀

Will it happen again?

Today we see a similar situation. Trump is once again criticizing too high rates, and the US economy is feeling the pressure.

If history repeats itself, perhaps we will see another round of weakening of the dollar, and with it an increase in risky assets.

Tu-ze-moon

But don't forget that macroeconomics is a long game. Keep an eye on the key signals, especially the DXY and the Fed rates.

Do you think Trump will weaken the dollar? Or will it be different this time? 🔥