Citing the result of the Georgia senate election where the Democrats swept to victory, taking both of the available seats.
The analysts (at a trading bank I can't really name) say the there is now a materially increased risk of a slide ion the US dollar, by as much as 20% over this coming year. Further:
- it heightens expectations of 1. a bigger fiscal stimulus, 2. hedging of dollar-denominated assets and 3. asset rotation.
The same analysts said back in November they expected the dollar to drop in 2021 due to the wide distribution of vaccines which would assist in boosting economy growth and trade.
