Trump: Likely to adopt pro-growth and dollar-supportive policies - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the first hundred days of the Trump Presidency are about to start and he is likely to adopt pro-growth and dollar-supportive policies, while he may repeat his resistance to a strong currency.

Key Quotes

“Actions usually speak louder than words, but at the start of the presidency, policy intentions may speak loudest of all. We see 5-10% appreciation ahead.”

“FX market confidence levels are low; trading patterns, whether in GBP/USD or USD/JPY and EUR/USD (let alone anything more exotic), can best be described as ‘jerky’. But the Trump presidency is about to start, and if his programme is pro-growth, it will likely be pro-dollar for now, which would lead to a further 5-10% rise during his first 100 days.”