State Street believes there could be a "short-term negative reaction" to the dollar if Mr. Biden pulls out of the US Presidential Election and traders cut back on trading linked to Donald Trump's victory. Noel Dixon, a macro strategist at State Street, believes Mr. Biden's exit will make competition more intense and cause market volatility, with "basically a Trump win being digested right now". The "Trump trade" has investors betting that his economic policies will only reignite inflation, putting pressure on long-term Treasury yields and pushing the dollar higher. "There will be fiscal stimulus impulses on both sides of the aisle... but the Biden administration will be smaller," says Mr. Dixon. "All else being equal, there will be less pressure on the long end of the Treasury yield curve". Traders will have to adjust their positions to accommodate this change.