The firm argues that the aussie should also rebound similarly
Westpac's senior currency strategist, Sean Callow, says that risk appetite will recover after the knee-jerk selloff to Trump testing positive for the coronavirus.
"My underlying assumption is that risk appetite multi-month will be underwritten by super-generous global monetary policy settings. It is a clear negative for Trump's campaign in that it takes him away from the trail. But does it draw him any sympathy votes?I am yet to be convinced that equity markets have really picked a preferred winner in terms of the presidency. We suspect Biden would be risk-positive due to better prospects of passing growth-positive legislation, but others will focus on the pledged increase in corporate taxes if he wins."
Again, a lot of it depends on how Trump's health condition develops in the coming days/weeks but for now there is just a lot of uncertainty surrounding that.
Emotions are running high and the social media echo chamber is buzzing, so that plays into sentiment as we look towards the next few sessions.
As for Trump, he is part of the more vulnerable age group but if he survives it without much hassle, he could easily brush the disease off as being "yet another flu".
