(Yahoo Finance) Business sentiment has been shaken by U.S. President Donald Trump’s escalating trade war with China, the European Union and other countries, financial analysts say. But some are wondering why the impact hasn’t shown up in the hard economic data. And while the stock market has been volatile, it certainly could be a lot lower considering the nature of the political rhetoric.
On the currencies side, the dollar has strengthened over the past few months against rivals from both developed and emerging countries.
John Doyle, vice president of dealing and trading at Tempus Inc in Washington, argues that the United States and U.S. assets are gaining steam because there’s simply nowhere else for traders to turn in the current environment of risk avoidance.
“The U.S. and the dollar are the least ugly duckling,” Doyle said.