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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.