BLOOMBERG.COM
The Trump-trade is unshakeable. The dollar jumped versus all of its major counterparts, adding to its best rally in more than 15 years against the yen and its longest winning run since the euro was created. Central banks in Asia were compelled to take steps to shore up their currencies, while the greenback’s strength also weighed on commodities from metals to oil. Bonds around the world added to their biggest two-week loss in at least 26 years. Perceived credit risk headed for the biggest weekly increase since June and stocks fell. The catalyst is Donald Trump’s victory in the U.S. presidential election almost two weeks ago, and speculation the Federal Reserve will raise interest rates more rapidly than had previously been priced into financial markets. In her first public statement since the vote, Fed Chair Janet Yellen told lawmakers Thursday that the central bank is close to boosting borrowing costs. Speculation that Trump’s new administration will increase fiscal stimulus was already bolstering bets on further hikes in 2017.
Read more>
The Trump-trade is unshakeable. The dollar jumped versus all of its major counterparts, adding to its best rally in more than 15 years against the yen and its longest winning run since the euro was created. Central banks in Asia were compelled to take steps to shore up their currencies, while the greenback’s strength also weighed on commodities from metals to oil. Bonds around the world added to their biggest two-week loss in at least 26 years. Perceived credit risk headed for the biggest weekly increase since June and stocks fell. The catalyst is Donald Trump’s victory in the U.S. presidential election almost two weeks ago, and speculation the Federal Reserve will raise interest rates more rapidly than had previously been priced into financial markets. In her first public statement since the vote, Fed Chair Janet Yellen told lawmakers Thursday that the central bank is close to boosting borrowing costs. Speculation that Trump’s new administration will increase fiscal stimulus was already bolstering bets on further hikes in 2017.
Read more>