On Tuesday November 8th, the American people go to the polls to vote for their next President. Clinton and Trump have been trading blows since the first primaries back in February and we’ll soon know which one of them will become the 45th President of the United States.
Whether you’ve been following the run-up to the election closely or not, you need to be aware that a large political event such as this can have a huge impact on the economy and currency markets.
Like Britain’s vote to leave the EU, there could be some uncertainty in currency markets leading up to election day, and following the result there is also potential for increased volatility around rates.
We worked with you throughout the turbulent UK referendum period and we’re here to help you again. We’ve put together this guide on how the US Presidential election may affect you and how you can plan ahead.
If Clinton wins
The election polls are currently favouring Hillary Clinton, which means that the markets are also backing her to win. Clinton has political experience, whereas this is Trump’s first official foray into politics.
Analysts predict that a Clinton win therefore brings less uncertainty and the market values predictability. Analysts suspect that a Clinton win will mean less volatility for the Dollar than a Trump win will, as Clinton is seen as the safer bet for the US and global economy.
If Trump wins
Donald Trump has very little political experience and he is currently trailing in the polls. He is also yet to give much detail on what his plans for the US economy would be if he won the election.
Analysts believe that a Trump win means more uncertainty for the US and the wider global community, which could see some erratic trading with currency markets likely to become very volatile.
What does it mean for you?
It’s impossible for you to perfectly predict the US Presidential election result and its after effect.
For holidaymakers: taking a trip to the US, planning ahead is key. Know exactly how much you’ll get for your pounds by locking in a rate on your FairFX Dollar Card for your next trip.
Businesses or individuals making international payments: speak to your currency dealer to understand your options to minimise your risk when making international payments whichever way the dollar goes.
Major political events such as the US election can produce a lot of uncertainty but if you plan ahead you will be able to reduce the impact currency fluctuations have on you.
As always, we’re here to help you and we’re working hard to give you the best exchange rates we can.
Email our customer service team if you have any questions regarding Currency Cards, Travel Cash or online international payments.
If you’re making larger or more complicated payments, or are looking to reduce your exposure, speak to our dealing team.