Final debate this week before the US election

The two presidential candidates Hilary Clinton and Donald Trump will meet for the final time on Wednesday, as the race for the White House really starts to heat up. Expect nothing but fireworks this week from both parties which should make for interesting viewing this week!

Clinton seems to have stormed in front after the release of a videotape in 2005 shows him bragging about sexually assaulting women, which in turn caused many of his own party to no longer endorse his campaign. This weekend, Trump has made fresh claims that the election is rigged by the dishonest media and also at polling places. Many believe that Trump is clutching at straws with his latest claims, after the latest polls have Hilary Clinton ahead by double figures. I can’t help but feel there may be a trick hidden up Mr Trumps sleeve, there could be a negative revelation about Mrs Clinton yet to come.

How the election could affect your trade

In the build up to any election, the currency in question can be subject to volatility. Major events such as an election can cause political instability, and during times of political instability investors will withdraw their funds from the US and into more stable currencies. This is likely to cause short term dollar weakness as witnessed in the 2012 re-election of President Obama. The US Dollar is currently very attractive for any clients looking to buy sterling however this is likely to be reversed in the build up to the election, which is now only 22 days away. If you are looking at buying sterling with dollars within this time period, it may be worth looking at a forward contract to limit any dollar weakness by securing the 31 year highs currently seen with a small deposit.

Data releases this week

As well as being highly entertaining, the last debate is a much watch for any US Dollar clients. Although this isn’t a data release the outcome could have an effect on the exchange rate. Outside of politics, on Tuesday the consumer price index will be released and is expected to show a significant increase which could see the dollar strengthen even further against the pound and could also put pressure on the Fed to raise interest rates at Novembers meeting.

With only 22 days left before the US election the US Dollar could become prone to weakness. Get in touch with our brokers on 01494 725 353 to discuss your buying or selling requirements.


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