TD Securities political risks potentially shifting to America from Europe
Eyeing a divided U.S. Congress after the upcoming mid-term elections. Current projections are for the Democrats to take control of the House of Representatives, Republicans though are likely to hold their majority in the Senate
Says TD:
- would make it difficult to find common ground on infrastructure or tax policy
- may weigh on the USD
- USD is currently 7% overvalued on their model
- U.S. growth probably peaked
- Brexit deal and an Italian budget resolution look likely - investor angst could shift to the US
- EUR and GBP to benefit
