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Asian currency markets on Monday were expected to see the first major investor reaction to the weekend’s assassination attempt on former President Donald Trump.
Liquidity may be hampered as Japanese market will be affected Closed on Monday due to a national holiday.
“Additional volatility is likely, and a clear interpretation may be particularly difficult,” Garfield Reynolds, head of Bloomberg’s Asia team, said in an op-ed.
The U.S. dollar is likely to open stronger relative to other currencies as forecast markets increase expectations for a Trump victory in the presidential election. The dynamic could be similar to what happened after last month’s debate between Trump and President Joe Biden. Trump’s favorability has since improved.
After the shooting, the price of Bitcoin climbed above $60,000.
“This weekend’s events are likely to lead to heightened volatility in stock and bond markets on Monday,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “We expect funds to flow to safe-haven assets such as the Swiss franc and gold. Due to the instinctive flight to safety, , Bitcoin reacted positively to the news.
According to Bloomberg, the dollar’s moves against the yen may be limited after potentially stepping in to support the yen last week. Cash Treasury bills will not trade until London markets open on Monday.
Marko Papic, chief strategist at BCA Research, said in a note that Trump’s increased chances of being elected should interest bond investors because of the impact it could have on government spending. U.S. Treasury yields soared as investors pondered Trump’s fiscal plans after Biden’s poor performance at the debate.
“The bond market should at some point realize that President Trump has a better chance of winning the White House than any of his rivals,” Papik said. “And I still believe that as his odds increase, there will be a riot in the bond market. The odds should also go up.”
