Back
13 Feb 2013
Forex Flash: Currency War detracting from real underlying dynamics – BBH
Brown Brothers Harriman analysts feel that for all the attention currency wars are receiving may be distracting investors and policy makers from the real underlying dynamics.
They feel that, for example, the fear of currency wars is that they lead to trade wars, yet the opposite appears to be taking place. In the State of the Union address Obama clearly endorsed a US-EU free-trade agreement. The goal would not be simply reducing tariff barriers, but also harmonizing regulations and technical standards, as well. Incidentally, The EU will soon complete a trade agreement with Canada and will launch negotiations with Japan in a couple of months. It reached an agreement with Singapore at the end of 2012. We also note that talks for a Pacific basin agreement (Trans-Pacific Partnership) are also underway.
They feel that, for example, the fear of currency wars is that they lead to trade wars, yet the opposite appears to be taking place. In the State of the Union address Obama clearly endorsed a US-EU free-trade agreement. The goal would not be simply reducing tariff barriers, but also harmonizing regulations and technical standards, as well. Incidentally, The EU will soon complete a trade agreement with Canada and will launch negotiations with Japan in a couple of months. It reached an agreement with Singapore at the end of 2012. We also note that talks for a Pacific basin agreement (Trans-Pacific Partnership) are also underway.