020 7898 0500The dollar is likely to be fairly sensitive going into today’s election and may continue to be until we know the result (we have had delays in recent elections and this one promises to be close – so who really knows when the result will emerge). Stock markets have already shown a positive increase due to Hillary Clinton being cleared of any criminality, and with the final polls still putting her ahead by just a few points, it bodes well a stronger dollar going into tomorrow.
This is not just about the rhetoric of Donald Trump: historically, the US dollar has reacted more positively to a Democrat win over a Republican win. A victory for Hillary Clinton should restore confidence for investors and could have a positive impact on the dollar as it would signal a continuation of existing policy. Conversely, a victory for Donald Trump could cause an irrational movement in the market.
Other than that, data in the US is fairly quiet this week.
