Products to watch in the run-up and during the election:
- Standard & Poor's 500
- Dow Jones
How will it affect Forex markets?
The U.S. dollar has had an interesting year so far. It has shown good fortune against currencies such as the GBP, which can be put down to the UK voting to abandon its E.U. membership but in comparison to other safe-haven currencies, such as the JPY and CHF, the dollar has shown weakness throughout 2016.
Donald Trump running for the Republicans and Hillary Clinton running for the Democrats are both promising to drive economic growth in the United States. Political values always have an impact on a countries economy and almost everyone’s investment behaviour.
As a trader, it is important to understanding one’s emotional reaction towards the election, not who actually wins it, as this is what could affect the trades you place during the election. Do your research and don’t fall into the “confirmation bias” trap, where traders only research information which supports their initial beliefs.
How will ICM Capital support you?
When there is any sort of political uncertainty in a country it can drive down the value of the currency in that country. With ICM Capital you can trade (BUY or SELL) USD currency pairs no matter in which way the markets move.
Remember, as the election debate heats up ICM Capital can support you when trading the international financial markets, whatever is happening in politics around the world. We have a range of options such as CFD contracts on stocks, indices, and precious metals. If you do have any questions or concerns, feel free to give us a call on +44 207 634 9770.