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Nov 06 - 01:24 PM
USD: Historically, A Divided Congress Likely USD Negative - Nordea
First appeared on eFXplus on Nov 06 - 11:20 AM

Nordea  Research  discusses the USD outlook in light of today's US mid-term elections.

"A hung congress would be a bad scenario for the USD, while you should expect EUR/USD to drop swiftly through the 1.13 level in case Trump and the Republicans manage to secure another 2 years with a Republican majority in both chambers.

Historically the USD has fared poorly both before and after mid-term elections which have resulted in a hung congress. while there is no significant USD-pattern around other mid-terms.

A hung congress on Tuesday will be bad news for the USD, given lower prospects of Trump-stimuli in a hung congress scenario. If we get a hung congress, then we should prepare for more a mix of aggressive trade rhetoric (due the president’s widespread prerogatives on trade) and no further fiscal stimulus," Nordea argues. 

Source:
Nordea Research/Market Commentary

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