Fasten Your Seatbelts For A Volatile Election Night
It’s one more trading session before Tuesday as U.S. voters choose their next president and traders are in the starting blocks for a long and volatile election night tomorrow. However, the winner might not be known for days after tomorrow’s voting ends.
The polls signal a tight race between Donald Trump and Kamala Harris and as long as there is no signal for a clear leader, the U.S. dollar tends to weaken. Also, a softer-than-expected U.S. nonfarm payrolls reading last Friday buoyed Federal Reserve rate cut bets and thus, weakens the greenback. The Fed is expected to cut rates by 25bp on Thursday.
Regarding the outcome of the U.S. election, it is widely considered that a Trump win will be positive for the dollar. The most impactful outcome for the market, however, would be a Trump presidency with full control of the Congress. A Harris win and a split Congress would likely result in a U.S. dollar sell-off.
We wish everyone very profitable trades for tomorrow and the days ahead. We will be publishing daily trading signals Tuesday.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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