Republican sweep raises risks to the outlook – ABN AMRO

FXStreet Insights Team FXStreet

Republican clean sweep makes it significantly easier to implement full policy agenda, ABN AMRO’s economists note.

Parity for EUR/USD can be on the cards

“Risks very firmly tilted to the downside for US and global economic growth and to the upside for US inflation. While Fed policy could be tighter than our current base line, the ECB could cut rates faster.”

“Republican sweep sets the stage for US-European rates divergence. Parity for EUR/USD could be on the cards. We will publish an updated macro and market base scenario later this month.”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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