As the US presidential election approaches, many traders and investors are wondering what will happen to the forex market if Hillary Clinton is elected. Clinton has been the favorite to win the election for a long time, and polls show that she has a significant lead over her opponent, Donald Trump. Here’s what we can expect if Clinton becomes the next US president:
Stable US Dollar
Clinton’s economic policies are expected to be relatively stable, which should help to keep the US dollar steady. Clinton is seen as a moderate candidate who is likely to continue many of the policies of the outgoing president, Barack Obama. This includes maintaining the independence of the Federal Reserve, which should help to keep the US dollar from fluctuating too much.
Clinton has also promised to invest in infrastructure, which could stimulate economic growth and create jobs. This could lead to a stronger US economy, which would be positive for the US dollar.
However, Clinton has also proposed some policies that could weaken the US dollar. For example, she has promised to raise the minimum wage and to make college education more affordable. These policies could increase inflation and put pressure on the US dollar.
Overall, the forex market is likely to remain relatively stable if Clinton is elected. However, there could be some short-term volatility as traders adjust to the new administration.
Stronger US Economy
Clinton’s economic policies are expected to be focused on job creation and economic growth. She has promised to invest in infrastructure, expand access to affordable healthcare, and increase taxes on the wealthy. These policies could stimulate economic growth and create jobs, which would be positive for the US economy.
In addition, Clinton is seen as a proponent of free trade, which could help to boost US exports. This could help to reduce the US trade deficit and strengthen the US economy.
However, Clinton’s policies could also lead to higher taxes and increased government spending. This could increase the US budget deficit and put pressure on the US economy over the long term.
Overall, Clinton’s economic policies are likely to be positive for the US economy. However, there could be some short-term volatility as traders adjust to the new policies.
Impact on Other Currencies
Clinton’s policies are likely to have a mixed impact on other currencies. On the one hand, a stronger US economy could lead to increased demand for imports, which could be positive for other currencies. In addition, Clinton is seen as a proponent of free trade, which could benefit other countries that trade with the US.
However, Clinton’s policies could also lead to a stronger US dollar, which could be negative for other currencies. In addition, her policies could lead to higher inflation, which could put pressure on other currencies.
Overall, the impact of Clinton’s policies on other currencies is likely to be mixed. However, the stability of the US dollar is likely to be positive for the global economy as a whole.
Conclusion
If Hillary Clinton is elected as the next US president, we can expect a relatively stable forex market and a stronger US economy. Clinton’s policies are likely to be focused on job creation and economic growth, which should be positive for the US economy. However, there could be some short-term volatility as traders adjust to the new administration. The impact on other currencies is likely to be mixed, but the stability of the US dollar is likely to be positive for the global economy as a whole.
