US FX WRAP: Dollar further weighed by US-EU trade conflict

The continuing trade conflict between the US and EU is placing further downward pressure on the dollar.

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US FX WRAP: Dollar further weighed by US-EU trade conflict

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Context

This geopolitical tension likely heightens uncertainty in the markets, which could lead to safer asset flows towards currencies like the Swiss franc and Japanese yen, while simultaneously impacting cross-asset correlations, especially in commodities and equities.

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