FOREX
The US Dollar Index, which tracks the greenback's performance against a basket of major currencies, reached a multi-month high as the European session began. Following yesterday's uncertainty, when the former President's prospects appeared weaker, today marked a resurgence of the "Trump trade," with the Republican candidate seemingly on the brink of victory in the US presidential election. Trump has campaigned on a protectionist platform, pledging to impose additional tariffs on all imports. If enacted, such policies are likely to drive inflation higher. In this context, it's no surprise to see US Treasury yields rising and the dollar strengthening, as investors brace for a scenario in which the Federal Reserve may need to reinitiate its battle against inflation.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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