The usual array of suspects is being cited:
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Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing concerns over rising federal debt and persistent fiscal deficits. It may yet have further US bond market implications.
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Trump’s proposed tax bill. The bill is projected to increase the national debt by $3 to $5 trillion, raising concerns about fiscal irresponsibility and adding pressure on the dollar. It seems ‘progress’ is being made.
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Ongoing trade tensions, including potential new tariffs and discussions at the G7 finance ministers meeting, have created additional uncertainty.
This article was written by Eamonn Sheridan at www.forexlive.com.
