GDP VS Currency

US GDP Growth rate QnQ estimates till 2026 says economic slowdown. Whereas European and Asian countries estimate higher growth. This will impact 10Y US-bond yield to lower. If 10Y yield is cooling down then it will force USD to devalue to control the debt ceiling.

Market + Currency always favours the country which has higher share in terms of commodities supply, as commodity carries trade value.  Thus, levying tariffs by US to other countries is a temporary effect, other countries will find its way to trade in alternate currency other than USD.

All in all Trump actions are moving towards De-dollarisation!

Disclaimer: Views presented above is only for educational purpose.