Barclays: US tariff ruling may be positive for risk-sensitive currencies.

Barclays stated that the ruling by the US Supreme Court on tariffs poses a higher obstacle to the White House setting trade barriers and is positive for global economic growth. Strategists including Lefteris Farmakis wrote in a report on February 22, "We believe that this development is mainly positive for riskier currencies in the foreign exchange markets." They specifically emphasized high-yielding emerging market currencies, as well as strong G10 currencies such as the Australian dollar and the Swedish krona. They wrote that the ruling also reflects the "checks and balances of the US power structure." Under unchanged conditions, this move will reduce investors' premium preference for US assets and the dollar. "Nevertheless, the fiscal impact of this ruling is still worth noting, especially in terms of tariffs that may stimulate the economy and provoke a response from the Federal Reserve."