US Dollar boosted by latest FBI update

The US Dollar was resurgent during yesterday’s trading session after it emerged that US Presidential hopeful Hillary Clinton will not be facing criminal charges over her private e-mail server.

This is a sharp turnaround from just last week after the US Dollar had its worst week against the UK’s Pound since late 2009, after the FBI was once again investigating Clinton over the missing emails scandal.

What investors and those hoping for a stronger or weaker Dollar can learn from last week and yesterday’s price movement, is that financial markets are generally hoping for a Clinton victory. European equity markets surged yesterday off the back of the news with Germany's DAX, the UK’s FTSE 100 and France's CAC 40 all gaining by as much as almost 2%. US equity markets also managed to reverse their biggest losing streak in almost 36 years as the S&P posted its first positive day in 10 trading sessions, after losing 3% of its value since the re-investigation into Clintons emails started.

The Greenback has already recovered a cent vs the Pound, and moving forward I’m expecting the currency to continue to go from strength to strength but only providing Clinton wins the presidency. We have seen over the past 10 days what financial markets and Dollar buyers think of a potential Trump presidency.

I also think its worth noting that whilst financial markets are pricing in the closed FBI email case, the issue is likely to linger on the minds of voters who’ll be casting their votes this week. I certainly don’t think the vote is a foregone conclusion and as we’ve seen from the UK’s Brexit vote earlier this year, polls should be taken at face value and not as definitive. Also after a quick glance on social media sites, you’ll soon realise Trump isn’t short of supporters himself. For example, he has more followers on Twitter than his opponent, and his conventions appear to be attracting larger crowds.

Election outcome and keys times to look out for this week

US Dollar sellers who aren’t comfortable taking the chance of a Trump victory and a potential weakened US Dollar may be wise to book their rate prior to the early hours of Wednesday morning in the UK, as this is when it’s likely that the most talked about Presidential election is recent times will be announced.

Aside from this much talked about announcement I expect Thursday’s Initial and Continuing Jobless Claims at 1:30pm UK time to be a market mover, so get in touch if you would like to plan around this week’s key events.

With a Clinton victory likely to strengthen the US Dollar, clients looking to buy US Dollars can still enjoy a window of opportunity to make a transfer. Call our trading floor today or email me here to get a quote.

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