Trade war the biggest risk for market since global financial crisis, says FXTM
Written by: Billy Toh
KL (July 10): The escalation of trade tensions between the United States and China is the biggest risk that the financial market has come across since the global financial crisis, says FXTM analyst Jameel Ahmad.
“We’re looking at the biggest risk for the financial market since the global economic crisis at the turn of the decade and we have no idea how this might play out,” said Jameel, the forex brokerage group’s global head of currency strategy and market research.
“Investors are becoming a lot more risk-off and we see risk aversion on a global scale, where it’s not Malaysia that’s been impacted. It’s global market as a whole. This is impacting economies not just in this region. It’s a global thing,” he added.
According to Jameel, the ringgit’s outlook hinges on the global trade developments, especially the trade tension that is escalating not only between the US and China but also between the US and Canada, Mexico and the European Union.