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Trump is betting on the most powerful dollars and the revenue of the higher bonds has led to adverse results so far this year, as investors take a quieter view of the economic repercussions of the World Trade War of the New American Administration.

The American currency has declined and the treasury bonds have gathered since January (January Commercial definitions Tax discounts will keep inflation and interest rates high.

“Despite what you feel [Trump] “The professions have not succeeded,” said Jerry Menir, co -chair of G10 Forex Trading at Barclays. “This makes people re -evaluate them.”

Investors have partially retreated from Trump’s popular deals because the president’s tariff has so far been less aggressive than many. But many are also concerned that the uncertainty raised by the trade war has stopped in stopping may begin to harm confidence in the American economy, undermining the bullish market’s reaction to Trump’s election in November.

Mineeer said that the “medium list” of popular trading, such as betting against the euro or the Chinese Rinnabi, did not equal investors this year. “You still need reasons for the dollar [rally] To continue stretching, at least at the present time, these things have been withdrawn away. “

Bets that Trump’s inflationary policies would give the Federal Reserve a lower space to reduce interest rates and growth pressure in the United States trading partners, helped lead a large gathering in dollars. The American currency gained 8 percent against a basket of its peers from late September to the end of the year.

Asset managers turned to a long net dollar site in December for the first time since 2017, according to the analysis of the CME futures group. But so far this year, the US currency decreased by 0.2 percent.

High inflation expectations also helped to pay the treasury revenues for 10 years, which are inversely transmitted to prices, to 4.8 percent in January, the highest level since late 2023.

But they have now decreased to 4.53 percent, as the market concentration of inflation has turned to fears that the prosperous economy in the United States can stumble under the new president.

“There is an essential fear that growth may slow,” said Torstein Saluk, the chief economist of the Apollo investment company.

David Kelly, the chief global strategy of JPMorgan Asset Management, said that the bond market “is discovered between the fear that inflation will be slightly higher due to a commercial war, and fear that American growth or global growth will be slower.”

Trump fell this month at eleven o’clock with threats to impose a comprehensive tariff on Mexico and Canada, giving both countries delay for 30 days. But he pushed 10 percent of the additional customs tariffs in China, and late on Friday, the president said it could hit Japan with new drawings, to address the trade deficit with the most important US ally in India and the Pacific.

It has also announced plans to obtain a 25 percent tariff on steel and aluminum imports.

The emerging markets, which are expected to be a special victim of the trade war and a stronger dollar, have also challenges expectations in recent weeks, after the dark 2024 in which some currencies have touched their lowest multi -year levels.

Since the start of Trump’s second term last month, Peso Chile has gained more than 3 percent, while the real Colombian and Brazilian Peso rose more than 6 percent against Greenback.

Strategists at Bank of America have turned into positively emerging markets in the belief that bets are on a higher dollar, which is the strongest of which are in the real exchange rate conditions since 1985, to be overcome.

“It is a very extremist situation, and a lot of noise of customs tariffs are already priced,” said David Honor, head of the steadfast income strategy at the bank.

“It is not as if it couldn’t get worse – of course, it can – but now, given back and forth in the past few weeks, we have priced us in a good amount.”

Investors say the central banks in the emerging market have an area to reduce borrowing costs to support economic growth, after the high rate of aggression in recent years to treat inflation. Mexico, the Czech Republic and India all reduced their prices last week.

Real interest rates – which are adjusted to inflation – are also higher in most developing world compared to the United States, making it profitable borrowing in dollars and investing in emerging markets.

“Regardless of how they cut or flower, local currencies have become very cheap – even if the dollar has not weakened from here, and only settles,” said one of the emerging market fund manager, who has just returned from Brazil. For assets at a cheap price.