Trump's victory caused the dollar to surge and the euro to fall [ABO]

The strength of the dollar is durable and should continue in the months, if not years, to come – Depositphotos.com Author DmyTo

Trump won the election, against all expectations, and the markets reacted strongly: the dollar jumped, the euro fellbanking stocks and Tesla soared (Elon Musk could join the new administration), and Bitcoin hit record highs. Rumors are also flying: some are worried about a devaluation of the yuan in response to new American customs tariffs (60% taxes on Chinese imports) and an increase in bond rates linked to the deficit.

However, the dollar is expected to remain strong thanks to the dynamic US economy. Bond rates should stabilize around 4%, a sustainable level, and a devaluation of the yuan seems unlikely, as it is risky for Beijing, which fears a capital flight like in 2015.

Geopolitically, the political transition in the United States may increase tensions. In particular, the conflict between Iran and Israel is expected to continue, and the situation in Ukraine remains uncertain. Russia could even provoke NATO by attacking the Suwalki Corridor, a narrow strip of land between Lithuania and Poland, which would put NATO in a difficult position with no real strategic stakes.

Also read: Currencies and American elections: remember to secure your positions! ????

This instability may lead to high volatility on the markets in the coming months. In the event of increased tension, it could be wise to turn to safe havens like the dollar, yen and Swiss franc to protect against a possible geopolitical shock.