Crédit Agricole Group: US Election May Affect Dollar's Trend

WikiFX News (7 June)-Last week, Crédit Agricole Group discussed the US election's possible impact on dollar. The bank believed that the US election will have a substantial impact on the trend of the dollar,

noting that the domestic unrest during summer will increase the political uncertainty of the US presidential election on November 3, thus affecting the currency's outlook. In fact, the polls suggest President Trump's support rate nationwide and in major battleground states has fallen behind his rival Biden. Meanwhile, the Democrats are also struggling to gain control of the Congress.

Analysis shows that dollar will fall if the incumbent US president faces re-election difficulties in the general election year, and should the president really fails to be re-elected, dollar will decline even further. The market is worried that such a scenario will materialize dollar's slump in the next few months and increase the dollar's trading volume.

WikiFX believes that EUR will continue to face challenge, even the dollar against GBP will also decline in the second half of this year.