Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Oct 24 - 12:55 PM

Goldman Sachs: USD Scenarios and the Upcoming US Elections

By eFXdata  —  Oct 24 - 11:30 AM

Synopsis:

Goldman Sachs outlines potential scenarios for the USD in light of the upcoming US elections, emphasizing the impact of tariffs on exchange rates.

Key Points:

  • Valuation Support:
    Recent developments continue to bolster the pillars supporting the Dollar's high valuation over the past decade.

  • Republican Sweep Scenario:
    A Republican sweep is expected to elicit the strongest Dollar response, as it could lead to significant tariff increases alongside domestic tax cuts.

  • Divided Government Outcomes:
    A narrower, smaller Dollar rally is anticipated if a divided Republican government is formed. Conversely, a Democratic sweep or divided Democratic government could initially weaken the Dollar as markets adjust to the potential for more significant changes in tariff policies.

  • Impact on Sensitive Currencies:
    Following these market movements, currencies sensitive to China and US policy, such as MXN, CNH, KRW, EUR, and AUD, are likely to experience quick relief.

Conclusion:

The outcome of the US elections will play a crucial role in shaping the USD's trajectory, with varying implications depending on the election results and their influence on tariff policies.

Source:
Goldman Sachs Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2024 eFXdata · All Rights Reserved
!