There Is Little Competition For Money To Be Regarded As A Reliable Successor To The US Dollar.

The sustainability of the role of the United States dollar as a global reserve currency has been increasingly questioned since the recent white house changes.

If some of the positions mentioned by President Trump have become reality, the confidence of the market in the US dollar may be weakened.

Therefore, investors should take seriously the possibility that the US dollar will be less secure in the next few years.

Of course, focusing solely on the dollar itself is not enough. Investors should also consider replacing the US dollar.

At the moment, there are few reliable successors competing for dollars.

The euro is the second largest reserve currency after the US dollar.

When the euro zone was founded in 1999, some experts predicted that the euro would replace the US dollar in 2015.

Since then, however,

The differences became more apparent.

Unless the euro zone becomes a fiscal alliance to share risks, this proposition is unlikely to be established, otherwise investors will be reluctant to trust the euro. They are worried that the eurozone will face disintegration at any time.

In the list of currencies suitable for the global reserve currency, the yen ranked third.

During the period of rapid development from 1970s to 1980s, Japanese leaders chose to adopt a protective strategy which did not promote the internationalization of the yen.

At present, in view of its long-term economic downturn and population ageing, it is hard to accept this challenge in a very short time.

With the rise of China, the status of RMB is getting higher and higher.

China promotes RMB

Great progress has been made.

The amount of currency swap and the successful inclusion of the RMB into the SDR basket of the IMF indicate that China has been preparing for the renminbi as a reserve currency.

However, the share of the renminbi in the foreign exchange market is still very low, which accounted for only 1.7% of international payments in January 2017.

Some of the things investors take for granted may no longer be relied on, and the US dollar will become less secure in the future.

Nevertheless, through the above analysis, we find that all of the above currencies have not yet prepared for this heavy responsibility, even in the wrong direction.

The dollar surged in the last three months of 2016, but as investors lost patience with the details of Trump's fiscal stimulus plan, the dollar lost about half of its gains in the first quarter of this year.

Even the Fed's moves to raise interest rates in March and the prospect of further tightening in the future have not aroused.

Rebound.

According to the latest data from the CFTC, as of March 28th, hedge funds and other big speculators switched to holding dollar clearance for the first time in four weeks.

Amundi, Europe's largest Asset Management Co, said it would be difficult for the US dollar to resume its gains in view of the weakening of Global trade disagreements reflecting strong economic growth in the United States and weaker economies in other regions.

James A, James Kwok of the company, said: "as the market moves from the US inflation to global re inflation, from the divergence of monetary policy to the convergence of policies, the US dollar will not be able to perform well."

Now investors bet that the ECB will begin to raise interest rates before the end of the QE policy. Most economists also believe that the stage of the BoJ's expansion of stimulus has ended.

However, not everyone thinks the US dollar will fall into the current trading range.

Bradley, partner of Hunter Burton Capital of Sydney fund company, said that he remained optimistic about the US economic growth and was optimistic about the US dollar. The US dollar is expected to rise to 120 against the Japanese yen and further higher after reaching parity with the euro.

"In the medium term, this is a buying opportunity for the US dollar," he said.

But now the market is more based on political pactions rather than economic fundamentals.

For more information, please pay attention to the world clothing shoes and hats net report.