A Divided Congress Could Put the Dollar’s Bull Run at Risk
- Morgan Stanley, Credit Agricole see dollar losing ground
- Greenback sell-off may present chance to re-enter longs: Citi
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The dollar’s bull run against major currencies could come to an end in 2019 after the Democrats took the U.S. House from the Republicans in the midterm election.
While the outcome was largely expected, analysts at Morgan Stanley and Credit Agricole SA say it could lead to a gridlocked government during the rest of U.S. President Donald Trump’s term, undermining efforts to extend tax cuts and boost infrastructure spending. This could weigh on the greenback, which has outperformed all Group-of-10 peers so far this year.