MUFG maintains a bearish bias on the USD into year-end.
"The chart highlights a pretty consistent post-election pattern – the US equity markets tend to perform well in the 3mth period following an election, no matter who wins. In 8 out of the last 10 presidential elections, the S&P 500 has advanced in the 3-month period following election day. 2000 and 2008 were the only two down years," MUFG notes.
"While 2000 was the election in which the result dragged on it was also the period into the 2001 recession while in 2008 it was during the worst period of the Global Financial Crisis. So the omens for risk are very good which means the prospects for the dollar are not great," MUFG adds.