Quick sketch of where to for the USD under Biden and Trump

RBC tiptoe into the political minefield of the US election. It’s a critical event ahead, so we are all going to have to.

On the USD, RBC cite election uncertainty:

• “Until we have more clarity on post-election policy, our 2025 dollar profile remains pretty flat,”

Analysts paint a broad outline of scenarios under the two sides:

• If Biden wins the extension of status quo would leave the dollar little changed on political influences

If Trump wins, its “wildcard” for the US dollar:

• Trump would probably lean on the Fed to cut rates, a USD negative
• on the other hand his big tariff policy imports to the USD could be dollar positive

This article was written by Eamonn Sheridan at www.forexlive.com.