Forex Flash: US energy prices create a comparative advantage – Deutsche Bank

FXstreet.com (Barcelona) - In terms of energy markets, in their latest Global Economic Perspectives piece, Deutsche Bank look at the impact of the US shale energy revolution, particularly for the manufacturing sector. According to Macro Strategy Analysts J. Reid and C. Tan, “The sharp discount of US energy prices relative to international equivalents provides a significant comparative advantage. As a result, US manufacturing is likely to benefit, rather than be hurt by, the shale energy boom.”

Moreover, “Although US consumers are not likely to receive a substantial direct benefit from these dynamics, they will benefit from lower overall inflation. In addition, a continued increase in US energy production will lead to an improvement in net exports.” they add.