Wells Fargo's Aroop Chatterjee said that rising geopolitical uncertainty will drive up foreign exchange risk premiums in Europe, East Asia and Latin America, while also providing support for the US dollar. “We don't think America's actions in Venezuela will trigger widespread risk aversion in global markets,” he wrote in Monday's report. “Whether the US can maintain control will take time to see; therefore, any widespread sell-off associated with Venezuela should subside.” The global economy's dependence on Venezuela is low; it has a negative impact on oil prices, but it's not obvious, he explained.

Wells Fargo's Aroop Chatterjee said that rising geopolitical uncertainty will drive up foreign exchange risk premiums in Europe, East Asia and Latin America, while also providing support for the US dollar. “We don't think America's actions in Venezuela will trigger widespread risk aversion in global markets,” he wrote in Monday's report. “Whether the US can maintain control will take time to see; therefore, any widespread sell-off associated with Venezuela should subside.” The global economy's dependence on Venezuela is low; it has a negative impact on oil prices, but it's not obvious, he explained.