Which presidents have been good for the Dollar? Société Générale economists analyze the behavior of the Dollar between elections.
Credit spreads widened in the run-up to the election and tightened after the election
The fate of the Dollar does not depend on who is the president. Even so, if I use the elections as the day on which a presidency begins to be measured, every Democratic president since 1980 has left office with a stronger USD than when they started. The only Republican president to leave office with a stronger dollar was Ronald Reagan, and it was just barelysince his second term almost completely nullified the enormous gains recorded in the first.
In recent years, in the run-up to elections, credit spreads have widened, while they have tended to narrow afterwards. This should be positive for the dollar before the election, and negative afterward as risk sentiment improves. However, although signs of this can be seen in the short term in the Dollar, this did not stop George W. Bush from presiding over the biggest drop in the Dollar of any presidential election, while the second terms of Clinton and Obama were notably dollar-friendly. . President Biden, however, has already seen the Dollar recover by 13%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
