Dollar Set for Pullback After Mid-Term Vote, JPMorgan Asset Says
- Long dollar bets have grown into a very crowded trade: Yeo
- Divided Congress may spell roadblock for future tax reform
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The dollar’s world-beating rally is about to run out of steam, according to JPMorgan Asset Management.
The greenback’s gains will probably peter out after this week’s U.S. mid-term elections, given the likelihood a divided Congress will stymie further reform, says Jasslyn Yeo, global market strategist at the money manager in Singapore. The dollar’s outlook is also worsening as a build-up in long positions suggests a reversal may be overdue, she said.