‘Huuuge’ Dollar Rally Predicted by Citigroup If Trump's# Stock
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by Lananh Nguyen
January 6, 2017, 2:33 PM EST
https://www.bloomberg.com/news/articles/2017-01-06/-huuuge-dollar-rally-
predicted-by-citigroup-if-trump-triumphs
Financial markets may be witness to a massive rally led by the dollar if
Donald Trump pulls off the biggest fiscal stimulus push since the 1980s.
That’s the view of Steven Englander, global head of Group-of-10 currency
strategy at Citigroup Inc. He estimates the greenback could jump more than
10 percent against both the euro and yen if the president-elect and Congress
carry out most of their stimulus programs while the labor market
strengthens. That could “easily” propel the dollar past 90 cents per euro
and 130 yen, Englander said, without specifying a timeframe.
“We can see a huuuge, not a baby, USD move ahead,” Englander wrote in a
note following the release of December’s employment report. “This would be
the biggest fiscal shock since the Reagan period” if Trump’s plans are
carried out and the Federal Reserve stays hawkish.
Englander’s estimates are more bullish than the median forecast of analysts
surveyed by Bloomberg, who expect the dollar to finish this year at about $
1.06 per euro. That’s not far from $1.0528, where it traded as of 2:26 p.m.
Friday in New York. The greenback is predicted to weaken to 115 yen by year
-end from 117.05 Friday.
The Bloomberg Dollar Spot Index, which measures the greenback against 10
major peers, has surged more than 5 percent since Trump’s election victory
in November. The currency has risen on speculation that the president-elect
’s spending pledges will fuel inflation and prompt the Fed to tighten
monetary policy.
January 6, 2017, 2:33 PM EST
https://www.bloomberg.com/news/articles/2017-01-06/-huuuge-dollar-rally-
predicted-by-citigroup-if-trump-triumphs
Financial markets may be witness to a massive rally led by the dollar if
Donald Trump pulls off the biggest fiscal stimulus push since the 1980s.
That’s the view of Steven Englander, global head of Group-of-10 currency
strategy at Citigroup Inc. He estimates the greenback could jump more than
10 percent against both the euro and yen if the president-elect and Congress
carry out most of their stimulus programs while the labor market
strengthens. That could “easily” propel the dollar past 90 cents per euro
and 130 yen, Englander said, without specifying a timeframe.
“We can see a huuuge, not a baby, USD move ahead,” Englander wrote in a
note following the release of December’s employment report. “This would be
the biggest fiscal shock since the Reagan period” if Trump’s plans are
carried out and the Federal Reserve stays hawkish.
Englander’s estimates are more bullish than the median forecast of analysts
surveyed by Bloomberg, who expect the dollar to finish this year at about $
1.06 per euro. That’s not far from $1.0528, where it traded as of 2:26 p.m.
Friday in New York. The greenback is predicted to weaken to 115 yen by year
-end from 117.05 Friday.
The Bloomberg Dollar Spot Index, which measures the greenback against 10
major peers, has surged more than 5 percent since Trump’s election victory
in November. The currency has risen on speculation that the president-elect
’s spending pledges will fuel inflation and prompt the Fed to tighten
monetary policy.
