The “Donald Trump effect” consolidates the global dollar at two-month highs

He global dollar remains at its highest levels in more than 60 days driven by the trade policies that the Republican candidate and former president donald trump promised to apply in USA if he wins the November 5 elections against the Democrat Kamala Harris.

He dollar indexwhich compares the greenback with a basket of six currencies of similar global weight, was trading at 103.75 this Thursday.

The presidential election in USA remains in a very delicate situation and Trump’s tariff, tax and immigration policies are seen as inflationary and, therefore, negative for the treasury bonds and positive for the dollarthe latter at a more than two-month high against its main peers.

Meanwhile, the yield on the 10-year US Treasury bond last rose 3 basis points to 4.042%, Reuters reported.

For his part, the euro remained at an 11-week low as a result of the 25 basis point cut in interest rates by the European Central Bank (ECB), while European stocks rose slightly, balancing gains in Wall Street with falls in Asiawhere a report on real estate policy in China It was disappointing.

The European Central Bank made its first consecutive rate cut in 13 years, taking it to 3.25%. “Although the markets had discounted this reduction, the decision has been somewhat controversial within the Governing Councilsince at the beginning of October it was going to be a month of transition, but the ‘rush’ of Federal Reserve (Fed) to accelerate the cuts and the bad economic data have led the central bank to implement this movement,” said El Economista.

Markets are pricing in another cut in December. Those expectations have been a factor in the euro’s recent decline, which fell 0.1% to $1.0851, its lowest level since Aug. 2. The performance of German 10-year bondthe reference of the euro zonerose 3 basis points to 2.21%, but hit a two-week low the previous day.