With the Nov. 5 U.S. presidential election still more than nine months away, Wall Street is weighing in on the possibility that Donald Trump returns to the White House and is mapping out the potential reactions that could unfold in financial markets. As Trump faced off with challenger Nikki Haley in the New Hampshire Republican primary on Tuesday, Dominic Wilson and Vickie Chang of Goldman Sachs
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looked back to the market reaction seen from the results of last week’s Iowa Caucus. In particular, they zeroed in on a 13-hour window after the caucus took place at 7 p.m. local time on Jan. 15, and point out that the dollar strengthened against its major peers by enough “to look unusual relative to normal levels of volatility.” The greenback’s pronounced moves during that window suggest that Trump’s likely focus on trade and international policies “could provide a meaningful further boost to the dollar,” Wilson, a senior advisor in Goldman Sach’s global markets research group, and Chang, a strategist, wrote in a note late Monday. Treasury yields also moved higher, helping to support their view that a Trump-led Republican sweep could affect the government-debt market as well.
How equities, currencies, and Treasury yields moved during a 13-hour window after the Iowa Caucus started.
Source: Bloomberg, …
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GS,
-1.68%
looked back to the market reaction seen from the results of last week’s Iowa Caucus. In particular, they zeroed in on a 13-hour window after the caucus took place at 7 p.m. local time on Jan. 15, and point out that the dollar strengthened against its major peers by enough “to look unusual relative to normal levels of volatility.” The greenback’s pronounced moves during that window suggest that Trump’s likely focus on trade and international policies “could provide a meaningful further boost to the dollar,” Wilson, a senior advisor in Goldman Sach’s global markets research group, and Chang, a strategist, wrote in a note late Monday. Treasury yields also moved higher, helping to support their view that a Trump-led Republican sweep could affect the government-debt market as well.
How equities, currencies, and Treasury yields moved during a 13-hour window after the Iowa Caucus started.
Source: Bloomberg, …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]