In the final week of the US Presidential campaign, City Index explore how financial markets might react to Trump and Clinton in the White House. There is potential for significant market activity, especially if Trump secures a victory, as investors worry about an unpredictable president at the helm. We may see equity markets and the US dollar drop as investors put their investments into safe havens such as yen and gold.
Over the longer term, Trump may lean towards a more hawkish FED and higher interest rates, which could lead to a stronger US dollar. This in turn may weigh on the price of gold. Clinton, on the other hand, is seen by Wall St as a safer pair of hands and is likely to favour a more neutral approach to US monetary policy. This could lead to steadier, but less spectacular gains for the greenback.
In the following video, City Index examines how the outcome of the US election will potentially impact financial markets and create trading opportunities. Losses can exceed your deposits.