US: Downward pressure for the USD and long yields – Nordea Markets

Jan von Gerich, Global Fixed Income Strategist for Nordea Markets, suggests that the outlook of further debt ceiling battles in the US, the chance of impeachment, increased uncertainty and the low odds of further fiscal stimulus burden the outlook for general risk appetite, the USD and long yields.

Key Quotes

“The USD, long yields and equity prices all surged, when Trump was elected. There is now pressure for the opposite moves, but since this time the election result was not major surprise, the moves will probably take place more gradually and the magnitude of the moves should be smaller compared to 2016.”

“In the short term, there will probably be a short-term bounce in risk-appetite, as the uncertainty related to the election results lifts.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.