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 the results are summed up, the situation may be ambiguous; if street riots, as predicted by some analysts, break out, then it is clear that the dollar exchange rate will also decline.
If everything goes more or less calmly, then we need to see which of the candidates for the post of head of state wins.
A Biden victory is widely expected to lead to a decline in the US dollar, but could also trigger positive trends in energy markets and the stock exchange.
This candidate's family is connected to the oil and gas business, so it's logical to expect higher prices for these products. Furthermore, economic stimulus will lead to increased demand for energy.
It's also easy to predict how the election will affect the dollar exchange rate if Trump wins. A strengthening of the national currency and a slight decline in stock market prices are highly likely.
Oil and gas prices may remain stable and not change significantly.
So, keep an eye on the news and await the results. Be aware that increased market volatility and widening spreads are possible during this period, and gaps are possible.
Current US dollar exchange rate - https://time-forex.com/kotirovki
