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The US dollar (DX=F, DX-Y.NYB) is rising as President Donald Trump indicates universal tariffs are still on the table even after seemingly pulling back from tariff action.
Seana Smith sit down with Citi US equity strategist Drew Pettit on Morning Brief to discuss his view that the market is not appropriately pricing in tariff risks.
"If you actually look really closely at the sensitivity to the US dollar ... that is the macro you want to focus on when it comes to tariffs — not interest rates, not commodity prices, the dollar," Pettit explains. "I do not think the dollar has fully reflected tariff threats, which means I don't think the equity markets have fully priced it in as well."
He adds that, because of this, "tariff risks linger out there."
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.
