The Republican bid for the US Presidency is no doubt going to have a serious impact on the US economy and on the US Dollar on Forex charts. There are a lot of people who are certain that a Republican taking control in the White House could mean a tighter belt in the Federal Reserve. If the Federal Reserve outlook becomes hawkish we can rest assured that there will be a lot of trouble for those currencies paired with the US dollar on Forex charts. There is going to be an awful lot of hustle and bustle in the US economy, and at first this might result in some reverberations within the equities markets. There is a lot that can be gained from this knowledge by the savvy trader, not the least of which is the fact that the USD will likely rise.
The Republicans will likely institute a number of different austerity measures as time goes on, and this will serve to satisfy many of the Conservatives within the Republican camp. Unfortunately by not satisfying the more Liberal mindsets the United States could see similar uprisings to those in Greece and Portugal, if this occurs then there is a chance that the US economy could actually suffer. The Republican party taking over will represent a much more staunch attitude towards fiscal responsibility and progress. This could make for some interesting days as time goes on since there will only be more and more tumult on both sides of the aisle. While there are certainly a lot of budget issues to be addressed in the United States they must not be addressed in black and white terms.
The road to fiscal prosperity in the United States will be a long one given their huge deficit, and the US dollar will likely follow whatever course is set on Forex charts. This is something that needs to be kept in mind when analyzing this currency against others when trading. Otherwise the consequences could be quite severe and numerous as time goes on, making for some very interesting times at the trade station. Watch for news coming out of the Federal Reserve and from Congress regarding upcoming policy changes. No one is quite sure of which direction things will go in, but one thing is clear, and that is that both sides have had enough and are prepared to take drastic action to move the economy forward.
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