HSBC global head of FX strategy, David Bloom has been a USD bull from what I remember and he continues to back the dollar. he made some comments a while ago, which supports the bullish bias, unless US and China reach a full trade deal, which seems a very long way away tight now.below are his main comments:

• A full blown US-China trade deal will be “game changer”
• Yuan will stay pretty stable and risk assets will rally
• Then you’ve got alternatives to the dollar
• But don’t hold your breath (on a deal)
• In the meantime, the dollar will “power ahead”
• The dollar is the currency to own

The “Phase One” deal which looked like a done thing until a couple of weeks ago, doesn’t seem so imminent now. The US is not rolling back tariffs, which is a sign that they are not so eager to reach a deal with China immediately. On the other hand, China is feeling pessimistic, as we heard them comment yesterday.

I have had the same opinion, there’s nothing else to buy right now since all major economies have wakened a lot more than the US economy. So, the takeaway here is that the USD will remain bullish in the coming months and we should see the pullbacks lower as good opportunities to go long on it.