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US Elections: Dollar and Stocks to React Positively to Split Result – ANZ

On Tuesday, November 8, the mid-term elections are held in the US, in which the 435 seats in Congress and 35 of the 100 in the Senate are voted on. As ANZ Bank strategists point out, dollar and equity markets tend to end the month higher after the mid-term elections.

Markets seem to like a split between Congress and the president

“We consider a Republican-controlled Congress to be the most likely scenario (55%). Not far off, with 41%, there is a divided Congress, with a Republican-led House of Representatives and a Democratic Senate.”

Dollar and stock markets tend to end the month higher after the mid-term elections“.

Markets seem to like the checks and balances associated with a split between Congress and the president.. This would be pertinent this time around, given concerns about more policy-induced inflationary pressures coming from a Democratic-controlled Congress. On this basis, we think the bond market would also welcome this split.”

Source: Fx Street

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