THE NEXT “TRUMP DOLLAR” IS LIKELY TO BE STRONG, AT LEAST IN THE SHORT TERM – COMMERZBANK
What will happen if Donald Trump is re-elected US President in November? Economists at Commerzbank analyze how the US Dollar (USD) could perform under a Trump presidency.
Making the Dollar great again?
The next ‘Trump Dollar’ is likely to be strong – at least in the short term. Sealing off foreign competition, deregulation, low taxes for companies and the rich: Trump's political agenda is likely to increase the profitability of capital invested in the US in many respects. And this should make the Dollar more desirable, i.e. more valuable.
In the long term, however, sealing off could lead to a loss of efficiency and thus to a weaker Dollar. The prospect of a strong Trump Dollar could also be disappointed if Trump does not content himself with publicly criticizing the Fed, as he did in his first term of office, but actually intervenes in Fed business. This would be very clearly USD-negative.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.