Scanning some of the responses to political developments in the US, rounding up some of the analyst comments
BoA / ML:
Split Congress a moderately bear development for the USD
- expect to see slowdown is US economic growth, continued Fed tightening providing less monetary policy support
- ill-will in Washington between the two sides could lead to policy gridlock, heighten risk for USD
- further out, Fed tightening could slow down, chance of much of a move about neutral for rates diminishing (note this is further out, for now Fed still tightening)
