Political dollar risks aren't going anywhere after midterms: Commerzbank
SPY•Commerzbank's Thu Lan Nguyen said political risks for the dollar could persist even if Democrats win the midterm elections, and that hedging costs could rise sharply again at any time.
1. Dollar risks may persist
Commerzbank's head of FX and commodity research, Thu Lan Nguyen, said a Democratic shift in the midterms would make it harder for President Donald Trump's administration to govern only on policies requiring congressional approval. She said key fiscal decisions supporting Trump's agenda had already passed, while he has often used executive orders on foreign and trade policy. Nguyen said those policies could become more volatile and that dollar investors should be prepared for hedging costs to rise sharply again at any time.
