The US dollar is coming off its worst two-week streak this year as slower US growth and inflation lead investors to bet on more aggressive policy easing from the Federal Reserve. However, the losses have been somewhat limited this week as politics remains front and center in the US and China.

FX markets have been caught in this tug of war between macro and politics and between the Fed and Trump. Investors are digesting the implications of a potential Trump 2.0 presidency and trade escalations between China and the West.

The Fed, ECB and BoE are expected to ease monetary policy over the coming quarters despite some reflationary tendencies boiling in global supply chains. All of this complicates the outlook for the second half of the year. Join macro analysts Boris Kovacevic and George Vessey as they break down this week's FX, market and macro news.

Market Update: Macro and politics in tug of war over FX markets