US: Slowdown to weigh on the US dollar - CIBC

Andrew Grantham and Royce Mendes, analysts at CIBC, point out that a slowdown in the US growth is likely to weaken the US dollar, particularly during the second half of the year. 

Key Quotes: 

“The record-breaking partial government shutdown will negatively impact growth in the first quarter of this year, but (...) it also has longer-term implications. Fiscal stimulus has played a big
role in the acceleration in US GDP growth under President Trump, with the biggest swing compared to Obama’s tenure coming not from tax-cut-induced consumer and business spending but direct government spending.”

“Current difficulties in achieving a consensus on spending among Congress suggests that this can’t be relied upon. A slowdown in the US economy, compared to a stabilization of growth elsewhere, is likely to weigh on the US$ particularly in the second half of this year.”