How the elections will affect the US dollar exchange rate, expectations and realities
Almost any political events have an impact on the dollar exchange rate, including presidential elections.
It is the presidential elections that exert the strongest pressure on the value of the national currency, and this is not surprising.
Indeed, as a result of a change of power, not only the ruling elite changes, but also the interests they lobby, and this cannot but affect the country’s economy.
Some presidents pursue social policy and thereby weaken the economy, which leads to increased inflation, while others, on the contrary, accelerate the pace of economic development, thereby strengthening the national currency.
How will the elections affect the dollar exchange rate this time?
First of all, it should be noted that the value of the American currency is also affected by the situation that is developing in the country - protests, rallies, riots.
But after summing up the situation may not be clear; if there are street riots predicted by some analysts, then it is clear that the dollar exchange rate will go down.
If everything goes more or less calmly, then we need to look at which of the contenders for the post of head of state won.
Biden's victory, according to the majority, will lead to a fall in the US dollar, but at the same time could cause positive trends in energy markets and the stock exchange.
The family of this candidate is connected with the oil and gas business, so it is quite logical to expect an increase in prices for these products; in addition, stimulating the economy will lead to an increase in demand for energy.
It is also not difficult to predict how the elections will affect the dollar exchange rate if Trump wins; the national currency will most likely strengthen and prices on the stock exchange will decline somewhat.
The price of oil and gas may remain at the same level and will not undergo any significant changes.
So, we monitor the news and wait for the results. Be careful, at this time there may be increased market volatility and widening spreads, and gaps may appear.
Current US dollar quote - https://time-forex.com/kotirovki