The three major pillars keeping the dollar strong unlikely to change - Deutsche Bank ...Middle East

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The three major pillars keeping the dollar strong unlikely to change - Deutsche Bank
Deutsche Bank has been bullish on the US dollar since the start of the year and sees no reason to pivot in light of three driving factors of US outperformance.1) US fiscal deficitsThe US passed a budget deficit of 5-6% of GDP for the fifth year in a row and DB now calls overspending 'a grand coalition' among Republicans and Democrats and includes "war-time deficit at full employment". Contrast that with the lower spending in Europe and elsewhere and you have a looming fiscal problem but strong growth and USD strength in the meantime.2) The dollar's safe-haven statusThe dollar can get away with high fiscal deficits because the domestic private sector is fully funding public sector spending. S

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