📣DXY: No High Hopes This Time For USD...

📣DXY: No high hopes this time for USD...

Two possible scenarios for the US election. In both situations,
I don't expect anything special.

Once the market absorbs the news that one of them won the election, it will all come back to the beginning of the month on the FOMC and what they will do next.

If the Democrats win the election, the market will support the US dollar, but after that, it will soon realize that the Democrats will not do more in the next two years than they have already done. In this scenario, the USD will rise with high hopes and fall again as the entire market will remember again that Inflation and the economic crisis are still intact.

If the Republicans win the mid-term elections, the USD will weaken as they are expected to make changes in fiscal economic policy and it is normal for them to create some turmoil. However, people can support them for a new beginning, but nothing comes in a day. Even if Republicans have better economic plans, it will take time for them to influence current economic conditions for better or worse.

⚠️⚠️⚠️PS: Remember the US economy is still very strong...
I didn't say the opposite at all.
This is a key factor regardless of what I think about the USD and the impact of politics.


Thank you and Good Luck!