I have around $20K USD which I'm considering converting in to 's. With the US presidential election coming up in the next month does anyone have a speculation on how a Bush or Kerry win would effect the US dollar?
Should I wait until after the elections in hope that I may see a better $/ exchange rate in the next 3-6 months?
I read an article about 6 months ago that said the current US/Sterling rate was George Bush's gift to us during election year - apparently this always happens - and it will reverse after the elections apparently.
I would say it's structural looking at the way the Fed needs foreign central banks to keep mopping up those t-bills, whether George is able to continue with this 'gift' of deficit spending is another matter.
Any brave forex traders out there?
Az.
I don't think it will make much difference to be honest.
I'd be interested to know similarly how a perceived protectionist policy will affect exchange rates (given protectionism vs free trade is
*supposedly* a Bush-Kerry difference). When a country announces it will throw up barriers to protect its industries, at first it seems its exchange rate should rise; but protectionism gives (foreign) businesses the willies, and is real no-no in the eyes of world financial policymakers--tendencies that should drag the currency down. Does anyone remember from experience?Seb
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