Will history repeat for Dixie and TrumpThe Wild Card: The US Dollar (Dixie) Trend. A sustained Trump-led drop in the Dixie (as we had seen in his first term) is still a significant downside risk for the dollar.
Potentially lifting majors further even despite the woes of European currencies and most risk assets. This is the "smart money buys dips" trend we've seen across Cable and Euro. However, this is a bet on a US story, not a Euro Zone one and could reverse temporarily before eventually go lower and taking Sterling and the Euro with it as the multi-polar world arises.
For now, Dixie has enjoyed a boost from better than expected Treasury sales, last month seeing massive inflows and strong demand. Especially from indirect buyers (foreign investors) with the primary dealers, buyers of last resort, given some respite (seeing lowest participation on record).
Perhaps a catalyst for a swift dollar rally into more aggressive downward pressure.
With the US potentially dipping into a recession. The dollar generally does well in economic slowdowns. But can it stop the drop to 93.6 ?
