Major central banks seek currency weakness over rivals, Daniel Lacalle argues

Major central banks seek currency weakness over rivals, Daniel Lacalle argues
Central banks target currency weakness

Daniel Lacalle, chief economist and investment manager at Tressis Gestion, comments that monetary policy is less about winning and more about determining which party faces losses first.

He observes that all leading central banks are aiming for weaker currencies, but are careful not to let their currencies fall too much in comparison to others. Lacalle highlights that the euro’s decline against the U.S. dollar is due to broader macroeconomic and monetary forces.

Lacalle has previously noted that estimates for rate hikes are dropping as inflation pressures subside in financial markets, according to one recent commentary. He has also observed U.S. WTI oil prices dipping below $69 per barrel as geopolitical risks ease and supply normalizes, as reported in another market update. These observations reflect his ongoing tracking of shifts in rates and commodities.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.