US Dollar exchange rates volatile on TV debate

With polls now suggesting Donald Trump is neck on neck with Clinton for the Whitehouse, this evening’s TV debate could be a crucial one.

One poll by Rasmussen had Trump at 44%, Clinton at 39%. Others have generally reflected a Clinton win but only marginally. With much of the rivalry between Clinton and Trump being likened to playground bickering, tonight’s debate will address the real issues facing America.

Americans are known for their love of TV with the average American watching 5 hours of TV per day. It is suggested over 20% of the electorate is currently undecided so the outcome of tonight’s debate could be a crucial to the campaign.

Whilst the US dollar has appeared oblivious to the election so far I think politics will become more of a driving force and tonight’s debate could be a turning point. I would personally expect Trump to come off better, and given the recent terrorist attacks he may choose to play on his position on immigration. With Clinton’s recent health issues her performance will also be watched with scrutiny. With her recent diagnoses of Pneumonia it will important for her to demonstrate that she is fit to run for Presidency.

US Dollar exchange rates and data this week

Interest rates still remain a key driving force on the US Dollar, last week the Fed held off causing the Dollar to weaken towards the end of the week. The next meeting is one week before the US election which for me makes it very difficult for the Fed to make the call then. December seems more likely but we will have to see who is in charge of the economy by then. The FED are supposed to be independent of political ties but its difficult to believe that this could be the case, given the potential for a Trump victory.

Thursday is a very important day for the US Dollar this week with US GDP (Gross Domestic Product) data, New Home Sales and a speech by Yellen. With much of the FED’s future decisions based on economic data, GDP figures specifically could play an important part in the interest rate decision.

Sterling remains at over 30 year lows against the US Dollar presenting unbelievable levels for US Dollars sellers for pounds. Whilst the prospect of a Fed hike looms and could support further USD strength longer term, the Election will I believe take centre stage very soon. This will undoubtedly lead to a weaker US dollar as the prospect of a Trump Presidency and his plans and impact on the global economy are factored in. Therefore, if you are looking to buy US Dollars, a window of opportunity could arise as we approach November.