With less than a week to go the two candidates couldn’t be closer as it appears the re-opening of the email scandal into Hilary Clinton takes its toll. The former first lady appears to have lost what looked like a comfortable winning margin as her credibility is well and truly tested.
James Comey who is the Head of the FBI has come under scrutiny for announcing further investigations in the final run-up to the vote, especially as the fall-out seemed inevitable.
Either way Trump will feel as if he has got justice that this topic has once again risen as he was so certain of foul play. Trumps has had multiple stories leaked into the papers and several aggressive smear campaigns have tried to derail his campaign, however for Clinton it appears this long running story of mis-using state secrets could have finally caught up with her.
If Trump was to move back into the lead, there would be two major effects on the currency markets in my opinion. The general uncertainty for the US could cause major volatility and the USD could lose much of the ground it’s made over the last few months. Secondly a Trump victory might prolong the Feds anticipated interest rate decision which would also have an effect on the Dollar helping the GBP/USD increase drastically.
Cable could well find itself back above 1.30 by the end of next week and much of the Brexit fear may start to evaporate as there could be bigger issus elsewhere. Alternatively, if Clinton does pull through to victory the US Dollar could receive a boost and an interest rate hike could be on the cards before the year is out.