As the US presidential election is slowly turning into a hot topic, economists at Nordea bet that Biden will win. The most immediate reaction will be a stronger USD and performance in duration as a Biden-victory may not be discounted at all in markets despite strong polling. Key quotes “If we assume that Biden intends to roll back corporate tax cuts, we would argue that the initial reaction would prove to be EUR/USD negative while the USD equities would likely struggle to outperform EUR equities over the medium-term. So, if we really summon our inner Cassandras, we suggest that EUR/USD goes swiftly down post a Biden victory, before returning higher over the medium-term. EUR/USD bulls will need to cheer on Trump in November.” “In general, we find that Biden’s presidency should be reflected in an initially stronger USD (due to a less benign corporate tax policy), less US outperformance of peers, sector outperformance in sustainables and a larger geopolitical risk premium on China (yes, we said that).” “It will probably remain a good idea to buy duration (and bet on flatteners) should Biden win the election. Should Biden opt for a less benign corporate tax regime, we would also argue that it speaks in favor of a more disinflationary environment with decent performance in duration.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD: Bulls back to take over the 1.25 level FX Street 3 years As the US presidential election is slowly turning into a hot topic, economists at Nordea bet that Biden will win. The most immediate reaction will be a stronger USD and performance in duration as a Biden-victory may not be discounted at all in markets despite strong polling. Key quotes “If we assume that Biden intends to roll back corporate tax cuts, we would argue that the initial reaction would prove to be EUR/USD negative while the USD equities would likely struggle to outperform EUR equities over the medium-term. So, if we really summon our inner Cassandras, we suggest that EUR/USD… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.