A piece from Dow Jones / Wall Street Journal on Goldman Sachs drawing implications of a potential Trump win in the 2024 Presidential election.
In brief from the article:
- Goldman Sachs looked to the market reaction seen from the results of last week's Iowa caucuses. In particular, they zeroed in on a 13-hour window after the caucus took place at 7 p.m. local time on January 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"
- Treasury yields also moved higher, helping to support their view that a Trump-led Republican sweep could affect the government-debt market as well.
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Interesting. Trump has just won the New Hampshire caucus. Will the USD move the same in the hours ahead?
