The race for Presidency over in the States has been dominating the headlines for much of this year already, and some of the more experienced members within our team believe that things are just beginning to heat up.
Politics can play a huge role within currency markets as the Brexit has just demonstrated. I think that this leadership contest in particular has the potential to really create volatility within exchange rates, and not just those involving the US Dollar.
As gaffe prone property tycoon Donald Trump continues to make headlines for the wrong reasons, Hillary Clinton continues to make ground in the polls even if she’s not every Democrats preferred choice, as the ‘Feel the Burn’ crowd have made us fully aware. Speculation is also mounting online regarding her physical health and the ‘lost emails’ saga will continue to linger. Yet despite this she’s gaining popularity quickly, and personally I think the financial markets are hoping for a Clinton victory, as her policies are a lot less likely to ruffle foreign feathers in what’s becoming an ever more globalized world economy.
Keep track of Pound to US Dollar exchange rates here.
Taking a glance at the economic calendar stateside this week I’m expecting it to be busier than last.
I’ve stated previously that I believe the US dollar is generally overvalued, but particularly when compared with the Pound. It may be an idea for US Dollar sellers to capitalize on the current 31 year highs, as should US data disappoint heavily we could see a selloff in future.
Key events this week consist of Tuesdays CPI Figures as well as Housing Starts, both released at 1.30pm. Then on Wednesday evening there will be the FOMC Minutes which could provide clues regarding future monetary policy. Initial Jobless Claims will be released at 1.30pm on Thursday with the previous figure to beat being 266k. On Friday the Baker Hughes US Rig Count will indicate demand for oil products which is an important update after the recent 5% drop in oil prices within a day last Thursday.
Do you have a currency exchange to make? Why not talk to one of our knowledgeable brokers today on 01494 725 353 to discuss your requirements.
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