FX Talking: Trump’s currency, your problem

Adjusted for inflation, the Federal Reserve’s measure of the broad, trade-weighted dollar is now at the highest levels since 1985. A stronger dollar this year is now very much a consensus call – but one with which it is hard to argue. Were it not enough that Trump’s policy manifesto is clearly currency-positive, the dollar is also receiving support from strength in the US labour market. This questions whether the Fed needs to cut rates at all.