Fears of a brewing trade war between the United States and the European Union hit currency markets on Tuesday, pushing the dollar sharply lower as investors digested fresh talk of a so called European “trade bazooka” and a wider escalation cycle.
The move is landing at the same time as U.S. equity futures slid about 1.5%, according to the Financial Times, reinforcing the sense that markets are not applauding this kind of trade politics, they are pricing it as self harm that is likely to hit the U.S. economy hard.
Measured in euros, the dollar’s drop is now close to 12% since last New Year’s Eve, underlining how quickly confidence can leak out of a currency when policy risk starts to look like the main export.
Uncle Bob's would like to apologize to the following people or groups of people who we undoubtedly have offended over the course of the past few years. If you feel you have been personally offended then take this apology to be specifically for you. Otherwise, we apologize to Jewish Mexicans, President Barack Hussein Obama Mmm Mmm Mmm a.k.a. Hopey McChangey, Catholic Priests who dork little boys, vegetarians, Fruit Loop, Atkins' Diet adherents and other fat-asses, Dennis J. Olson, Delta Lady, Joe and his Socks, paranoid persona's, space aliens, Illegal Aliens, Boy Scouts, same sex aficionados, Harry Reid, Nancy Pelosi, Canadians, ditch diggers, people who support the aforementioned, people on Prozac, Mel Gibson, Nazi Mods, Tiger Woods, motorcycle gang members, rag heads or towel heads or any other Middle Eastern personas or personae, Crotch Bombers, Britney Spears, the blind, the entire Gay and Lesbian community, Charlie Sheen, Black Panthers, NAACP, and anybody who has ever been called Lard Ass.
