Tomorrow will bring the first of several data releases this week for the US with Consumer Confidence data for October and August’s Housing Price Index. Wednesday will bring Purchasing Managers Index for along with New Home Sales and Trade Balance Data.
Thursday will see the major release of Durable Goods Orders and Initial Jobless Claims followed by Gross Domestic Product data on Friday. The US economy is under major scrutiny currently as the world awaits a potential interest rate hike. Good news for the US is considered as the key to whether or not there will be a hike.
US Election Final Stages
The race to the Whitehouse enters its last 2 weeks as both Trump and Clinton attempt to convince voters. Many might think it’s an astonishing achievement that Trump is going to manage to make it to the end of the race, considering he was 100/1 to win the election at the start. Moving forwards there will no doubt be a few more fireworks over the coming weeks and I would not be surprised to see a shock result.
The fact Trump is still close to Clinton in this race suggests there is still fuel in the tank and his supporters believe he can win it. If there was to be a late surcharge from Trump I believe the USD could fall as the world becomes a slightly more uncertain place. Trump has implied he could introduce some uneven policies with many investors likely to be apprehensive of the future.
I still believe it is very plausible that Trump could win this election by a small margin. The shock result could have a bigger impact than the Brexit has had on Europe and may provide some Sterling strength. If you’re a USD seller I would consider thinking about your options as we could start to drift away from the 31 year lows.