Today sees the final day for the US elections as President Obama and Mitt Romney continue to battle it out in what is being called one of the closest elections in history. Over the course of their campaigns the two candidates have gone head to head on a number of issues but it is likely that it will be the economy that will decide this election. If the American people believe Obama’s policies are working and have helped reduce the impact of the global recession he faced when he began his Presidency then he may secure enough votes to get his second term in the Oval Office, however should people believe that Obama has not done enough for the States during these difficult economic times then we may see people give Romney a chance. In America unemployment has remained over 8% for over several years and the average person’s income has fallen which has put a lot of pressure on the current President.
In terms of the impact the US election could have on the currency market it is likely to come down to the markets take on the two candidates policies on the US economy. With Obama we know how he operates in regards to the economy and what impact his decision are having and so should he get re-elected we may see the market remain fairly stable with possibly some Dollar strength where as with Romney he is an un-known quantity and so should he win the election we could see further uncertainty and therefore some Dollar weakness. When Obama was elected into office in 2009 there was a huge weight of expectation following a very successful election campaign and two terms of George Bush and as a result the Obama win led to some quite considerable Dollar strength. While I would be surprised to see similar movement at this election it is certainly something to be aware of if you are buying US Dollars (USD), in fact the election could effect all the major currencies including EUR, AUD, NZD and CAD.
So, if you need to transfer money abroad and are looking for exceptional exchange rates make sure you speak to one of our experienced currency brokers who will be happy to discuss your currency requirements and all the options available to you. You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad on 0044 1494 725353 or email me directly on firstname.lastname@example.org.