Trade War Tension to Boost Dollar in 2024 Election
The 2024 U.S. presidential election is likely to bring a boost to the dollar, according to JPMorgan Chase & Co. The bank believes that the election will bring increased trade war tensions, which will cause investors to flock to the dollar as a safe haven.
Trade War Tensions
Trade war tensions have been escalating between the U.S. and China since 2018. The two countries have imposed tariffs on each other’s goods, and the U.S. has also imposed sanctions on Chinese companies. These tensions have caused investors to become increasingly wary of investing in Chinese assets, and instead seek out safe havens such as the dollar.
The 2024 Election
The 2024 U.S. presidential election is likely to bring further trade war tensions, as the candidates will likely take a hard stance on China. This could lead to further tariffs and sanctions, which would cause investors to seek out the dollar as a safe haven.
The Impact on the Dollar
JPMorgan believes that the 2024 election will cause the dollar to strengthen, as investors flock to it as a safe haven. The bank also believes that the dollar will remain strong even after the election, as the trade war tensions are likely to continue.
The Impact on Other Currencies
The strengthening of the dollar is likely to have a negative impact on other currencies, as investors will be less likely to invest in them. This could cause other currencies to weaken, as investors seek out the dollar as a safe haven.
The Impact on the Global Economy
The strengthening of the dollar could have a negative impact on the global economy, as it could lead to a decrease in global trade. This could cause a decrease in economic growth, as countries are less likely to trade with each other if their currencies are weak.
Conclusion
The 2024 U.S. presidential election is likely to bring increased trade war tensions, which will cause investors to flock to the dollar as a safe haven. This could lead to the dollar strengthening, and other currencies weakening. This could have a negative impact on the global economy, as it could lead to a decrease in global trade.