Is the rising dollar a nightmare for emerging markets around the world?



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Defined the rise of the dollar and the tightening of monetary policy and the expansion of geopolitical risks, winners and losers in the financial markets and stock markets. By the end of the second quarter, the tech sector, US small businesses and oil prices are at the forefront since the beginning of the year.
The rise in the above categories was detrimental to the negative performance of sovereign debt in the Eurozone countries, emerging market currencies and equities, and weak Chinese equities. With US equities, stocks fell 10% from January's high, as the Treasury's yield curve became unchanged.
According to the NBK report, a more important issue for the markets The coming months, the Federal Reserve's policy course, and the new rise in the US dollar. The rising dollar increases the possibility of further declines in emerging markets.
The US economy continues to outperform peers and other emerging economies, causing a divergence in interest rates and economic numbers. If economic fundamentals continue to grow, there may be more correction in emerging markets and many developed countries are involved in these markets in terms of investments and loans.
And the personal consumption expenditure index follows the same trend towards 2.3%, the two figures reaching their highest level since 2012 and are considered as support by the Board of Directors. Jerome Powell.
Policymakers have stated that they expect monetary policy to tighten gradually as price growth continues to increase. The unemployment rate is expected to fall further below the target of the Office, indicating upward pressure on wages and prices.
With the failure of countries around the world to reach its level of price stability, the US economy has accomplished its mission by reaching the target inflation rate of 2%. The above data provides additional support for a stage of economic disparity between America and most major economies.
The third and final reading of the US Department of Commerce reveals that the US economy has developed at a slower pace than expected. GDP in the first quarter was 2%, compared to previous forecasts of 2.2%. The main reason for the decline in data is the weak performance of consumer spending in about five years. Consumer spending was 0.9% in the first three months of the year, compared to 4% in the fourth quarter of 2017.
In addition, GDP figures in the first quarter are generally low during the first three months of the year. In recent years, the seasonal factors that statisticians face are difficult to distinguish from data, which may be a factor.
Recent positive data from the world 's largest economy indicate that the weak reading of GDP in the first quarter was temporary and that we can look forward to an imminent recovery. Given the expected numbers, the Atlanta Reserve Board's forecast for GDP growth in the second quarter, which changes immediately with new data, was close to 3.8% on Wednesday, while economists surveyed by Bloomberg averages 3.4%.
The US economy still outperforms developed countries around the world, with economic figures varying in favor of America. In addition, the $ 1.5 trillion tax cut encourages faster economic growth in the second quarter, putting annual GDP growth on the right track, toward the 3% target of GDP growth. Trump administration. However, the US policy of "America First" and the recent escalation of commercial tariffs can stop supply chains, reduce business investment, and can eliminate the benefits of fiscal stimulus [f9b9] {
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