US Election: The pendulum swings

Voter turnout is a key aspect of any election and Democrats are hoping that their ability to expand the electorate with new Democratic voters will help Joe Biden win the White House. 63 million Americans have already voted in the US Presidential election, whether by mail-in ballots or attending early polling stations, meaning that we can expect overall participation levels to rise massively from 2016.  

The twist is that many of these early Democratic votes won’t be counted until the same time or after the votes of those attending polling stations on November 3rd. Come election night, we could see a dynamic at play that leans towards a Republican win in preliminary vote counting, before swinging to a Democratic victory after mail-in ballots are counted.

Meanwhile, the Republicans chalked up a win with the confirmation of Amy Coney Barrett to the Supreme Court. This gives the GOP a 6-3 court majority just in time to rule on election-related issues. Uncertainty has kept the US Dollar range-bound, with traders and investors unwilling to take large positions ahead of the risk event.

If you'd like to take proactive steps to manage your FX risk or requirements during political uncertainty, you can speak to one of our Dealers by calling, 020 3465 8200.