- April 23, 2022
- Posted by: Stratford Team
- Category: Economy
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The US dollar is having a good month. Against the euro and yen, it is appreciating for the fourth consecutive month. Rising rates continue to appear to be the main driver. The divergence of monetary policy is palpable. At the same time, it is not simply a positive news story in the US but also less constructive developments in Japan and the euro area.
The euro, trading around its lowest level in two years, may initially tick higher if Macron is re-elected President.Yet it should not be exaggerated. Le Pen never ran ahead in the polls, but the proximity spooked some market participants. One of the key reasons the race was tight was that Le Pen tapped into a concern with broad appeal and may strike a responsive chord elsewhere. Between the rising cost of living from inflation and higher taxes (in many countries), households are squeezed. This potent political issue taps into a vein of anger and frustration that…