EUR/USD: Trump tax cuts to fuel the downside to parity - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that they continue to see upside risks for the dollar since the election victory for Trump as markets continue to focus initially on reflation policies rather than on the more divisive policies related to trade and immigration.

Key Quotes:

"Initial comments & actions from Trump (acceptance speech; some backtracking on Obamacare; soothing words on China relations and choosing a Congressional insider as Chief of Staff) point to the reflation trade fuelled by tax cuts and infrastructure spending continuing and pointing to the need for the Fed to alter communications on policy actions.

A EUR/USD test of parity in the early months of the Trump presidency next year is looking more and more realistic."