Trump Trade Recovers, Pushes Dollar Higher
The almighty greenback is trading near a four-month high against its major rivals as market participants double down on the ‘Trump trade’ ahead of January’s inauguration date. With Republicans expected to cement control over both houses of Congress in the days ahead and early cabinet appointments exhibiting clear signs of a hawkish bent, the president-elect is positioned to implement an uncompromising policy agenda focused on lowering taxes, cutting immigration, rolling back the regulatory state, and raising tariffs against a broad range of trading partners – a mix that could raise inflation expectations and widen rate differentials in the dollar’s favour....