SINGAPORE (Nov 17): Currencies used to be influenced by a number of different factors, political, structural and cyclical.  However, HSBC FX Strategy now believes the dominant driver is politics.

This comes after bond markets were bought out by central banks, companies were driven to issue higher dividends to appease yield-hungry investors in equity markets, and central banks had extremely low or negative interest rates.

That leaves the foreign exchange market as the only outlet for disgruntled investors to react to political news.

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