US Dollar Could Rally 3% During A Second Trump Term: 'Far-Reaching Implications For FX Markets, Dollar'
Portfolio Pulse from Chris Katje
A Barclays plc analyst note suggests the U.S. Dollar could rally 3% if Donald Trump wins re-election, driven by proposed tariffs and less support for NATO. This has implications for FX markets, potentially benefiting USD ETFs like UUP and USDU, and impacting companies based on their currency exposure.
March 15, 2024 | 7:46 pm
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POSITIVE IMPACT
The WisdomTree Bloomberg U.S. Dollar Bullish Fund could benefit from the forecasted 3% increase in the U.S. Dollar value if Trump secures a second term, according to Barclays.
USDU, which aims to track the performance of the U.S. Dollar against a broad basket of currencies, is likely to see positive movement from the anticipated Dollar rally driven by Trump's trade and foreign policy proposals as analyzed by Barclays.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF could see a positive impact from a potential 3% rally in the U.S. Dollar if Trump is re-elected, as suggested by Barclays analysts.
Given UUP tracks the performance of the U.S. Dollar against a basket of currencies, a rally in the Dollar, as predicted by Barclays analysts due to Trump's proposed policies, would likely lead to positive performance for this ETF.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80