Thread: Reaction to the election.

It seems like out of dailyfx.com when we've got a combined house/senate then it'll weaken the dollar. What are other people thoughts on this? When will we all know the final tally? I am certain that we will see it on the charts as soon as it hits. thoughts?

Democrats is gaining some grounds... 3 more pickups needed and they command the upper house!

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Its now R44 vs D43 in the senate.

Since the election result is not going to get any impact on interest rates it is not going to have any impact on the dollar (except possibly quite temporary). I remember last year dailyfx stating that Kozumi's landslide win would help the yen, but it just turned out to be the start of the yen's long decline against the dollar.

Originally Posted by ;

As the election outcome is not going to have any impact on interest rates it's not going to have some impact on the dollar (except maybe very temporary). I remember last year dailyfx saying that Kozumi's landslide win would help the yen, but it turned out to be the start of the yen decline against the dollar.

I think you hit the nail on the head ...

I see that democrates includes a good opportunity to control one, although it appears that both of them, democrates and republic has the same chances.

I'm looking forward to democrates winning votes, and as you guys said, dollar negative...

I concur dollar nigative

Most intriguing watching Senator George Allen (R., VA) giving his great night speech. He's the son of former Washington Redskins coach George Allen (an enthusiastic customer of milk). The Allen senatorial race is too close to call. Allen's resistance is ahead by approximately 2300 votes. To 23,000 votes, that will change by sunrise!!!! But there are 200,000 absentee ballots to count. Could take some time.

BTW, I concur with Wacho to some point. . .the election will have short term visible consequences on the dollar. Nevertheless, when it is around six months from today, when you are least expecting it, then you will slowly but surely find the oh so subtle impact on not just interest rates but all else with a dollar nexus.

Politics. . .the wrist the motions that the hand that is invisible.

Originally Posted by ;

The popular beleif is that Democrats are predicted to obtain control of the house and the senate. At this point I am assuming that the market is stating that democrating control is dollar drawback.

IIRC, CurrencyTrader had an article demonstrating that it was the reverse. During Democratic presidencies the dollar went much stronger than during Republican.

Originally Posted by ;

IIRC, CurrencyTrader had an article demonstrating that it was the reverse. During Democratic presidencies the dollar went considerably more powerful than during Republican.

Absolutely. It was a product of this economic condition during that time. Much like alot of discussion about the FF we frequently fail to say rather we're referring to immediate reaction or long-term effects. I started this thread with the intention of talking about short term reaction that I neglected to say.

What I was refering to others had commented on was the overall beleif by company in general that the republicans could produce a more business friendly atmosphere. Which may have or might not have been fore the dollar in actuality. However that doesn't prevent speculators from buying the dollar based on the overall idea.

In actuality we have invested alot of money and the trend of growing trade deficit has lasted. In the past when we invest all of our current cash we simply print more. Assuming our m.o. isn't going to change anytime soon, I think we will see dollar imports become notable during or at the conclusion of their first quarter.

Another point of curiosity about precisely the same issue is that gold is down 8 dollars already this a.m.