The dollar is set to come out on top of the trade-war trap

Get the Full StoryREUTERS Jo Yong-Hak

There isn’t just one major source of market risk today.

That makes the global investment environment particularly challenging.

But the dollar looks set to conquer risks on multiple fronts throughout the summer.

USD: Flattening yield curve telling of two worlds investors are grappling with

While global trade war risks have dominated the agenda of late and rightly so , another red flag is the ongoing flattening of the US yield curve – with the 2s10s spread hovering at a mere 27bp. For FX investors, watching the shape of the US yield curve goes beyond just gauging recession risks – it can also help to provide a bit of context around the current trading environment. And right now, the flattening of the US yield curve is telling of the two conflicting world’s that investors are having to contend with:

1 current economic optimism that is fuelling central bank policy normalisation and higher short-term rates; andSee the rest of the story at Business InsiderNOW WATCH: Here's why the US Men's team sucks at soccerSee Also:Chinese tariffs are completely priced into US soybeansTrump keeps lashing out about rising oil prices but he could be partly causing themChina is delaying US imports from entering the country, according to reportsSEE ALSO: GOLDMAN SACHS: Here's where to put your money as trade tensions heat up

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