Synopsis:

MUFG updates on potential impacts of the upcoming US presidential election on the USD, emphasizing the risks of heightened volatility and potential dollar fluctuations depending on the election outcome.

Key Points:

• Trump Victory: A second Trump presidency could have a different impact on the USD compared to his first term. While Trump’s return might be favored due to a weakening labor market, it poses risks of increased market volatility and USD selling if election disputes arise.
• Harris Victory: A narrow victory for Harris might trigger social unrest, similar to the aftermath of Biden’s 2020 win. This unrest could introduce further uncertainty and volatility in financial markets, impacting the USD.
• Election Uncertainty: Polls indicating a close race and potential for a disputed result could amplify market volatility and influence USD dynamics. Repetition of 2020's contentious outcome could exacerbate these effects.

Conclusion:

The final leg of the US presidential election could significantly affect the USD, with the potential for increased volatility and market uncertainty based on the outcome and associated political developments.