The U.S. dollar is unlikely to make significant moves higher in the near term because of the ballooning budget deficit, Jeffrey Gundlach, the billionaire chief executive of DoubleLine Capital, said on a webcast presentation on Tuesday.
Gundlach noted the inverse correlation between the dollar and the twin deficit - the U.S. deficit plus the trade deficit - which has increased dramatically because of the government’s stimulus efforts to combat the effects of the coronavirus shutdown.
“We know with metaphysical certitude that the twin deficit is going to go way higher, I’d say to at least 12% of GDP. That would suggest the dollar going all the way back to 2011 levels,” Gundlach said. He believes the rising twin deficit will drive the dollar lower, despite the currency’s appeal as a safe-haven investment and the likelihood that such assets will be in demand if U.S. stocks fall from their current levels.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Some Global Markets Follow U.S. Stocks HigherSome international stock markets rose, and the dollar held near three-month lows, after a U.S. rally that pushed the S&P 500 into positive territory for the year.
Weiterlesen »
Bond king Jeffrey Gundlach on where the market is headed, makes big calls on gold, dollarNew for subscribers: Bond king Jeffrey Gundlach on where the market is headed, makes big calls on gold, dollar Check out CNBCPro for a free trial.
Weiterlesen »
Oil rally and Saudi price spikes could hurt refiners, stifling market recoveryGoldman Sachs cited 'very poor refining margins and the recent sharp decline in U.S. crude bases' as supporting its 'bearish outlook.'
Weiterlesen »
Kobe Bryant's Death Cost Family ''Hundreds of Millions'' of DollarsAmid her ongoing lawsuit against Island Express Helicopters, Vanessa Bryant says Kobe's death cost their family 'hundreds of millions of dollars.'
Weiterlesen »
Dollar wallows as focus shifts to Fed meetingThe dollar nursed losses on Tuesday as surging commodity currencies paused for breath and a rising yen pointed to investor trepidation over the U.S. Federal Reserve's next move.
Weiterlesen »
Asian stocks hug three-month highs after surprise U.S. jobs recovery, oil ticks upAsia shares advanced on Monday after a surprise recovery in U.S. employment lifted hopes of a quicker global economic revival after many weeks of lockdowns aimed at controlling the coronavirus pandemic.
Weiterlesen »