How the Elections Could Affect the Markets and Online Forex Trading

The November US presidential election is likely to impact online forex trading through the impact on the US dollar. Traders need to ignore any market weakness.

Online Forex Trading Around Election Time

There is a possibility for markets to react with increased volatility on the days leading up to the actual election time. The November 8 election will determine the next US president, and volatility will go away the next day, no matter who wins. In the case of extended weakness in the US dollar, traders need to be careful. And to treat it with suspicion. Because any such weakness is very likely to lead to a surprise rally soon after the election. In any case however, volatility risk is a possibility, as all US crosses will be impacted. No matter how the US dollar reacts to pre-election uncertainty, it will later resume its major trend. Technically, the US dollar is already in a down trend of some sort. But the validity of the entire sell signal is already in doubt, because of the timing. Some confusion is likely to come about due to the election. And this means potential false technical signals in many US crosses. Other than that, the election will not have a major impact on online forex trading, in any way.

Trading the US Election

Forex traders should look for possible false breakouts and signals. And consider the US dollar to be in a likely bear-trap. Where many bearish traders will get trapped into a US dollar which will at some point skyrocket for no apparent reason. Even when day trading Forex live, traders should always keep the US dollar’s peculiar strength in mind. It is even likely, in the case of Trump becoming the next president. That the US dollar will surprise even more. Through some deceptive decline and some nonsensical rally. So it makes sense to be alert, and suspicious of US dollar weakness. And generally not to take short trades on the US dollar if it does continue to go down before and around the election time. The reason is purely geopolitical. With Trump as president, the US will be seen as stronger diplomatically, and the US dollar as more attractive. If you go on analyzing these events and learn Forex trading through the mindset of carry-trade forex investors, and foreign investors. You will see that many false technical and fundamental signals on currencies are caused by geopolitics. This is why the current weakness in the US dollar appears to be so deceptive.

Online Forex Trading Past the Election

Online forex trading is expected to benefit in the US, if Trump wins the election. And this expectation has to do with the natural evolution of the financial markets. And with the fact that republican governments are more business friendly. And are likely to help the financial industry in the US evolve better. US based forex traders may be allowed more privileges in the future, if Trump is elected. Such as higher leverage accounts. And even possibly access to CFD trading accounts. These are some very real possibilities that could change the forex financial industry in the US for the better. Because too many regulatory restrictions are not good for anyone.