The pound is trading at a rate of $1.306 against the US dollar this morning, which is down only slightly against its opening rate. Politics is most
The pound is trading at a rate of $1.306 against the US dollar this morning, which is down only slightly against its opening rate. Politics is most definitely in the driving seat today with traders waiting to see what happens in the US midterm elections.
Americans are heading to the polls to vote on members of the House of Representatives and the Senate, which together make up the US Congress.
At present, both houses of Congress are controlled by Donald Trump’s Republican Party, but Democrats think they are in with a chance of winning a majority of seats in the House of Representatives.
If they were to do so they may be able to block President Trump’s economic plans, meaning the result of this election is likely to have a serious effect not just on the outlook of the US economy but also the value of the US dollar.
Currently, opinion polls put the Democrats ahead, indicating that political deadlock may be on the cards, but opinion polls have been proved wrong in the past few years so currency traders are awaiting some solid results before making any moves.
Meanwhile, on this side of the pond, the pound has remained buoyant on the latest surge of optimism surrounding a Brexit deal.
express.co.uk
