HALISTER1: Sell USD/JPY on Trump Debate Win, Buy on Clinton Win: BK Asset

Sell USD/JPY on Trump Debate Win, Buy on Clinton Win: BK Asset

(Bloomberg) -- Market hasn’t sufficiently priced in possibility of Trump emerging out of tonight’s debate victorious, and for this reason, larger reaction in currencies will be to a Clinton defeat, BK Asset Management managing director Kathy Lien writes in note received today.
  • If Clinton crushes Trump, stocks will rise, USD/JPY will gain, Canadian dollar will advance and EM currencies like MXN and CNY will move higher because they stand to lose the most from a Trump presidency
  • If Trump defeats Clinton, USD/JPY will fall quickly and aggressively, USD/CAD will hit a fresh 5-mo. high above 1.3250 and EM currencies will tank
  • USD/JPY steady at 100.36
  • USD/CAD steady at 1.3225
  • NOTE: Clinton, Trump face high-stakes debate in unpredictable race; story here
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Kathy Lien (Bk Asset Management)

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