In the last edition of their InSights newsletter, the BFI Infinity team made the case as to why precious metals, and gold in particular, had a promising outlook for the 2nd half of the year. Clearly gold delivered. Whereas the upward trend on gold was largely driven by geopolitics, the currency markets are also starting to show indications of broader changes to come, especially for the USD. But why?

In this InSights, Daniel Zurbruegg, BFI Infinity’s CEO, discusses the impact recent (and to be expected, future) rate cuts had in the US. He describes the current environment as yet another turning point in the US dollar cycle that will have far reaching consequences and, coupled with other factors such as the additional stimulus in China, the impact is already being felt on currency markets, commodities and emerging market securities.

Then, BFI Infinity’s CIO, Dirk Steinhoff, doubles down by taking a closer look at the reasons behind the central bank’s decision to cut interest rates and the growing pressure the US Dollar finds itself under. But don’t be fooled: while it is too simple to purely think the Fed’s U-turn is the only thing driving the USD’s long-term downward trend, we also aren’t hearing the death knell for the dollar’s overnight demise just yet. Still, it pays to prepare...

Download the PDF version of this BFI Infinity Insights edition below.