At Stake in the November Elections: The Value of the Dollar
The dollar has been in a slump against major currencies in the last few months, and betting on more declines has become a popular trade. Wells Fargo macro strategist Zachary Griffiths joins the latest episode of the “What Goes Up” podcast to discuss how the election results could interrupt or continue the trend.
Some highlights of the conversation:
“What we’re really focused on for the U.S. dollar in the near term is just general risk sentiment. And thinking about tying that into the election and what might happen in the next couple of weeks, we sort of see an outcome where if it's a highly contested or a very close election, that would result in U.S. dollar strength because that's really more of a risk-off story and would probably push people in into the dollar. But if you have a clear election outcome, big fiscal stimulus coming, more inflation coming, that's more dollar weakness… It's almost more of a sentiment thing, at this point, rather than fundamentals just because fundamentals have shifted so drastically.”
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