Election an 'impactful event' for US dollar: Strategist

The US dollar (DX=F) is extending its gains on Tuesday as investors increasingly view the currency as a proxy for the "Trump trade" with the US presidential election just a week away. Convera Head of Market Insights Steve Dooley joins Catalysts to discuss the factors driving the dollar's rise. Dooley notes that the upcoming presidential election will be "the most impactful event for the US dollar." He observes that the dollar remained relatively stable as polls and betting markets initially suggested a Harris win. However, when markets started to bet on a Trump victory in October, the US dollar rose sharply. "Financial markets are telling us, in terms of FX (foreign exchange) markets, that a Trump win, the potential for tariffs, the potential for inflationary impact, and also the impact on some of those trade-sensitive currencies like the Canadian dollar and the Chinese yuan, is all building for the fact that, for the moment, the markets see a Trump win as more positive for the US dollar," Dooley states. T
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