The US dollar saw the largest single-day spike since 2020 following the poll results, noted an AngelOne Wealth report.A strong US dollar has historically been a negative for emerging markets, the report added

The impact of a strong DXY is a huge macro headwindHere’s a quick look at what the poll results mean for equity, debt and commodities market.

Why will dollar strengthen?

According to the report, there is optimism around taxation policies and relaxation around regulations governing the financial industry, particularly the Dodd-Frank Act, which was put in place after the 2008 crisis.These expectations are reflected in the dollar index spike and the long-positions that traders are holding.