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Stocks and Investing
Fri, January 24, 2025
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Trump trade back in vogue - Societe Generale
- EUR/USD gathers bullish momentum and rises toward 1.0500 in the European session on Friday. The upbeat PMI data from Germany and the Eurozone, which showed an expansion in the private sector's business activity in January, provide a boost to the Euro and helps the pair push higher.
The article from FXStreet discusses the resurgence of the "Trump Trade" as highlighted by Societe Generale, following Donald Trump's victory in the New Hampshire primary. This trade strategy, which was popular during Trump's 2016-2020 presidency, involves betting on a stronger US Dollar, higher yields, and a steeper yield curve due to anticipated policies like tax cuts, deregulation, and protectionist trade measures. Analysts at Societe Generale suggest that markets are now pricing in a potential Trump return, with expectations of a hawkish Federal Reserve policy, leading to a stronger USD and higher yields. They also mention that while the market's reaction might be more muted compared to 2016 due to expectations already being somewhat priced in, the focus is on the potential for a steeper yield curve and the implications for various asset classes.
Read the Full FXStreet Article at:
[ https://www.fxstreet.com/news/trump-tradeback-in-vogue-societe-generale-202501241042 ]
Read the Full FXStreet Article at:
[ https://www.fxstreet.com/news/trump-tradeback-in-vogue-societe-generale-202501241042 ]
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