Monthly Video: Overdone Economic Impact Of The Dollar’s Fall
The financial markets were pretty calm this summer: volatility was most intense on the FX markets, especially the dollar whose weakness was amplified.
Little volatility on the financial markets over the summer, except on the euro/dollar. Dollar weakness can be attributed to a political issue (i.e. the capacity of the Trump administration to implement a fiscal reform) rather than a change in fundamentals. Interest rate spreads between the US and the eurozone have barely moved.
No change to our main scenario. Fundamentals remain good in terms of moderate, solid and synchronised economic growth in most mature countries in 2017 and 2018. Inflation is not showing any real signs of accelerating. Company earnings are still on a good track. We remain positive on risky assets in the medium term.