With the US election nearing, now is a good time to review current trading positions and potential trading opportunities.
Here is a quick Forex traders guide to the US election…
When is the US election?
The US election is 3rd November 2020. Most polls are open from 6am local time (11am UTC) and close between 7pm-9pm local time (12am-2am UTC).
When will the result be released?
Results should start coming in around midnight local time. The winner could be announced by 2:30am local time (7:30am UTC).
Who is likely to win the US election?
The US election is between Donald Trump (republican) and Joe Biden (democrat). The polls are suggesting that Biden has the upper hand and is likely to win the election, though polls have been wrong in the past.
How will the US election impact the currency markets?
Elections usually cause an increase in market volatility (movement). This volatility can create money making opportunities and also increase spreads. Some pairs could become ‘jumpy’.
It is advised that your account balance, margin requirements and stop-losses are reviewed before election day.
The key trading currency during the election will be the US Dollar (USD). But there could be currency movement across the board, including the Swiss Franc (CHF) and Japanese Yen (JPY).
Potential trading opportunities?
Apart from the initial trading opportunities created by increased volatility, there are also potential longer-term trading opportunities too.
Historically, traders and investors are bullish the USD with the win of a republican candidate and bearish the USD with the win of a democratic candidate.
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