Who will win the race to the White house?

The markets will be keenly awaiting the result of who will be the next US President on Tuesday. Last week saw the Donald trump claw back some lost ground on Hillary Clinton which saw US stock market volatility rise to levels of that of Brexit vote. I think it’s important to look at how each scenario will affect any of our clients with a US Dollar requirement.

Hillary Clinton

Her campaign has mainly been focused on the other candidate’s unfit running of the country if he were to become President. Having been backed by current President Barack Obama and first lady Michele Obama she is widely considered the safer bet for the financial markets. Mrs Clinton still currently maintains a slim lead over Mr Trump, and it is expected that the turnout from voters will decide who wins this vote. Has Hillary Clinton done enough with the African American and Hispanic voters to win? Currently, the US economy is going from strength to strength, with the latest jobs report exceeding expectations. Investors are currently expecting a rate hike in December, however I feel this would only happen of Hillary Clinton were elected President. Therefore, if Hillary Clinton does win, I would expect to see the US Dollar strengthen against most of its counterparts.

A choppy week for US Dollar rates with the results of the Presidential election due on Wednesday. Will it be Clinton or Trump?

Donald Trump

Donald Trump’s campaign has been controversial to say the least. His main advocate is himself and the core of his campaign has mainly been to bring those involved in corruption down. Trump has no doubt rallied a large White American base of followers, but little else outside of that I feel. If Trump does secure a Presidency, I would be very surprised if investor confidence wasn’t bruised, similarly to that of the Brexit, meaning the dollar could significantly weaken.

An event of this magnitude can have serious effects on the markets, therefore I would suggest talking to us here at currencies.co.uk to make sure that you’re covered in case of any shocks.

Clients looking to transfer funds into US Dollars may benefit from discussing their requirements with one of our brokers. Gambling on the result could be risky given the UKs decision to leave the EU earlier this year. Call our trading floor on 01494 725 353 or email me at lme@currencies.co.uk.

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