Will Trump make the US dollar ‘great again’?
• Investors keep speculating over the possible effects of ‘Trumpenomics’.
• They have been betting on higher US inflation, possibly due to more gov. spending and increased tariffs.
• Higher inflation means the Fed may have to raise rates faster than prev. This explains USD strength after the election.
• USD and stocks may remain supported in the near-term due to this speculation.
• But big moves likely to come after he lays out detailed plans on spending/tariffs.

Today:
• Germany: Final CPI for Oct. but usually not a major market mover for EUR.
• US: U of M consumer sentiment index for Nov. is exp. to tick up.
• Speakers: Fed Vice Chair Stanley Fischer and BoC Gov. Stephen Poloz. Investors will keep a close eye on Fischer’s remarks, for hints on whether the Fed is indeed likely to raise rates faster due to ‘Trumpenomics’.

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