There is a busy week scheduled for US dollar news this week which could see some major swings for the cable rate (pound to US dollar exchange rate).
Will the Mid-term elections affect the pound to US dollar rate?
On Tuesday the Mid-term elections will take place and this marks 2 years since the inauguration of US President Donald Trump. They are often billed as an approval rate on the President as their term passes the half way mark, and they consist of the combination of elections for the US Congress, Governorships and local races that take place every two years.
This bout of voting is particularly important at the moment as the Republican Party currently controls the House of Representatives and the Senate, which are the two chambers which make up the US Congress. This has enabled President Trump to push forward with his plans and agenda and enabled him to carry out his plans. However, many political pundits have suggested the Republicans could lose seats as a result of a blue wave for the Democrats. Donald Trump isn’t on the ballot but many see this as a popularity contest on his presidency so far.
I expect the pound to US dollar rate to be influenced by this week’s political updates, especially owing to the prominence of the Mid-terms within US media. The economic data out of the US has been impressive so far during Trump’s presidency and I would expect to see the US dollar lose value if Trump’s powers become limited. The previous US President, Barack Obama struggled to implement his policies for the final 6 years of his presidency after the Democrats lost seats in the 2010 Mid-terms and this is fresh in the memory of voters.
This side of the pond is expected to be much like previous months whereby the Brexit news will remain the key drivers of GBP exchange rates. Sterling has begun the week strongly after talks over the weekend of the previously cancelled November EU Summit being reinstated after Brexit progress has been made. Last week the headline was for a deal being done by the 21st so I expect this matter to continue to influence the Pound’s value.
If you would like to be updated in the event of a major market move between the pound and US dollar, do feel free to register your interest. You can send me a message directly using the form below and I will respond to you personally.