MARKET OUTLOOK - Expectations for Trump Policies Calm Down, Dollar Maintains Stable Course

Foreks - UniCredit Research reported that after the rise in the US dollar following Donald Trump's victory in the US presidential elections, the markets have taken a breather while the dollar has maintained a stable course. The report noted that investors have "sufficiently leveraged the 'Trump trade' for now" and are pausing ahead of further US data and early indicators regarding the extent to which the president-elect's economic policies will be implemented in the coming year. "The 'Trump trade' is a bet that proposed tax cuts and tariffs will be inflationary and could lead the Fed to adopt a more cautious approach on interest rate cuts, thereby boosting the dollar," it added. The DXY dollar index is trading at 106.300. It reached a one-year high of 107.064 on Thursday.