TD Securities: Stagflation is the latest risk facing the dollar. According to a report by Gold Finance, TD Securities' forex strategists have indicated that the possibility of the U.S. falling into stagflation has become the latest risk to the dollar's strength, and against the backdrop of political interference in federal agencies, the dollar is gradually finding itself in the "emerging market currency's position." "Although the market seems to ignore inflation and instead focus on the slowdown in economic growth, this could be a mistake," TD Securities' Jayati Bharadwaj, Linda Cheng, and Alex Loo wrote in a report on Monday. "The last U.S. CPI report showed the first signs of tariffs being passed on to consumers, and despite some downside surprises, the market still interpreted it as hawkish."
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TD Securities: Stagflation is the latest risk facing the dollar. According to a report by Gold Finance, TD Securities' forex strategists have indicated that the possibility of the U.S. falling into stagflation has become the latest risk to the dollar's strength, and against the backdrop of political interference in federal agencies, the dollar is gradually finding itself in the "emerging market currency's position." "Although the market seems to ignore inflation and instead focus on the slowdown in economic growth, this could be a mistake," TD Securities' Jayati Bharadwaj, Linda Cheng, and Alex Loo wrote in a report on Monday. "The last U.S. CPI report showed the first signs of tariffs being passed on to consumers, and despite some downside surprises, the market still interpreted it as hawkish."