Baseline view is that U.S. will avoid
protectionist policies, though there are risks and market could
become concerned, leading to a volatile but upward USD trend,
BofA strategists including Athanasios Vamvakidis write in note.
* Recommend trades that would do well even if there isn’t any
protectionism
* Three main scenarios of de-globalization: higher U.S. trade
protection, global trade war, major repatriation of flows
* “JPY, USD and NOK would benefit in most cases,”
especially against AUD, CAD, MXN and KRW; USD/JPY would
weaken
* For those who aren’t expecting extreme scenarios but still
want to hedge Trump trades, recommend go long USD vs AUD and
CAD in G-10; in EM, long USD vs KRW
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