The U.S. presidential debate is over, and the dollar index is showing its strength on the back of this. Ahead of this debate, the dollar traded very much lower against major currency pairs such as the Euro-dollar and Sterling-dollar. Investors have been favouring currencies like the Aussie and the Kiwi, mostly because these countries have controlled the coronavirus much better.
The worry among investors and traders now, is that the presidential debate turned out to be a really messy and chaotic debacle. U.S. voters have become even more confused after listening to last night’s debate. This was also the message of the debate, President Trump isn’t going to accept the loss if American people chose Joe Biden as their next president. This particular fact is very much driving the risk-off assets higher today, and the gains for the dollar index are primarily because of this.
Debates Do Not Change Course, Usually
The fact is that debates do not usually win the elections; all they do is add or subtract momentum. This was very clear when Donald Trump had his debates with Hilary Clinton. She was clearly not seen as aggressive enough. But Joe Biden has come across much more aggressive than her.
Cant Be Pushed Around
Joe Biden interrupted Donald Trump and the control of the debate during the first half. He used such eloquent sentences like “will you shut up, man?”. For currency traders and stock traders, the message was that Joe Biden isn’t going to allow Donald Trump to create headlines because of his ignorance.
Game Not Over Yet
The game is not over yet; as there are still two more presidential debates left. Despite the fact that many pundits are speculating that Joe Biden won the first presidential debate, the situation could change completely in the next few round. If history tells us anything, it is this, President Trump took a much bigger lead in his final presidential debate, and the same could happen very easily here. This is because Donald Trump has cut taxes for American people. He has pushed American companies to bring back jobs. Trump has taken the toughest stance against China, which no other previous president has done. However, the U.S. has lost a lot of lives because of Trump’s mishandling of the coronavirus situation. The U.S. has lost its prestige space among its allies because of Trump. The U.S. may no longer be able to get things done through international relations, as China has widened its grip over Asia. Trump has divided
Americans; the race issue has become a living nightmare for American people.
One Certain Element
Whatever the outcome will be, one thing is pretty certain; this stock market is highly likely to remain volatile in the coming weeks. Investors will be paying even more attention to Trump tweets. It is highly likely that Donald Trump will anchor further tensions with China and put more sanctions on Iran, which is already in turmoil, to show Americans that he is the guy that they need for the next three years.