LIVE MARKETS-Post-election dollar strength could stay for now - UBS

reuters11-15 02:22
LIVE MARKETS-Post-election dollar strength could stay for now - UBS

Main U.S. stock indexes modestly red; Dow off ~0.3%

Industrials weakest S&P sector; Tech leads gainers

Dollar up; bitcoin up ~1%; gold, crude slip

U.S. 10-Year Treasury yield falls to ~4.41%

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POST-ELECTION DOLLAR STRENGTH COULD STAY FOR NOW - UBS

UBS's global wealth management team in a note Thursday says that strength in the dollar following last week's U.S. elections and Republican Donald Trump's win as U.S. president could continue, at least in the short term.

The team writes that while Trump's policy agenda is still subject to uncertainty, the short-term positive impact on the dollar "looks more assured."

"New tax cuts would make US investments attractive to foreigners," the team notes.

"The threat of tariffs and higher yields should both boost the appeal of the dollar. We now anticipate the USD is likely to stay in overvalued territory for some time, and have adjusted our broader currency forecasts to reflect this."

The team adds that it's not yet clear how Trump's policies will be funded over the medium term.

"We must also remember the President-elect’s stated desire for both lower interest rates and a weaker dollar," the team notes.

The U.S. dollar index =USD, which measures the currency against six top counterparts, was last up 0.1% on Thursday, and earlier reached its highest since early November 2023.

(Caroline Valetkevitch)

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FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

IT'S NOT A DONE DEAL THAT TRUMP TARIFFS WILL STOKE 2025 INFLATION - CARSON GROUP - CLICK HERE

UNSEASONABLY WARM: PPI, JOBLESS CLAIMS - CLICK HERE

US INDEXES EASE EARLY; POWELL TO SPEAK LATER IN DAY - CLICK HERE

MIGHT GOLD'S RECENT STUMBLE TURN INTO A REAL TUMBLE? - CLICK HERE

IMAGINING A MORE CRYPTO-FRIENDLY U.S. POLICY MIX - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES INCH UP, EARNING IN FOCUS - CLICK HERE

NO END IN SIGHT FOR TRUMP-FUELED TRADE - CLICK HERE

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