As the world's top investment manager, I bring you the latest news on how the dollar rose on safety bids following the attempted assassination of former U.S. President Donald Trump. Despite Tokyo's suspected intervention efforts, the yen struggled to stay afloat in the cautious market mood dominated by news of the Trump shooting.
Trading was thin in Asia with Japan on holiday, but investors are now narrowing the odds of a Trump victory in the upcoming U.S. elections. This incident has enhanced Trump's "reputation for strength" according to Jack Ablin, chief investment officer at Cresset Capital.
Market reaction has been seen with the dollar pushing the euro and sterling lower. The risk-sensitive Australian and New Zealand dollars also fell in early trade. Analysts expect a stronger U.S. dollar and a steepening of the U.S. Treasuries curve if Trump's election odds improve following the incident.
Under a Trump presidency, market analysts anticipate a more hawkish trade policy, less regulation, looser climate change regulations, and extension of tax cuts, fueling concerns about rising budget deficits.
Meanwhile, in Asia, the yen remained on traders' radars following suspected interventions by Tokyo to prop up the Japanese currency. Analysts believe that thin liquidity during Japan's holiday could provide ideal conditions for authorities to intervene in the foreign exchange market.
In conclusion, this incident has led to uncertainty and volatility in the market. Investors need to be cautious and monitor the situation closely as it could have significant impacts on currency movements and global market stability.