zerohedge.com / by Tyler Durden / Nov 29, 2016 9:54 AM
One week after JPM done a accurate same forecast, warning that a new swell in a USDJPY will blur dramatically as Dollar euphoria shifts to concerns about protectionism, overnight UBS Group’s $2 trillion wealth-management arm pronounced yen traders have got a Donald Trump “trade” all wrong, and a yen will strengthen to 98 per dollar by this time subsequent year.
Cited by Bloomberg, a firm’s Tokyo-based conduct of Japanese equity investigate Toru Ibayashi echoed warnings initial uttered on this website dual weeks ago, and says expectations for mercantile enlargement have turn overblown, and protectionist policies will come initial in a new U.S. administration.
The required knowledge that has taken reason in a days given Trump’s feat is that given a President-elect campaigned on pledges of “massive” taxation cuts and spending of as most as $1 trillion over a decade to reconstruct infrastructure, he will send acceleration surging while unleashing a new debt-funded mercantile stimulus. This conjecture has driven a yen to an eight-month low nearby 114 on Friday, capping a biggest three-week decrease given 1995.