Q24N — The history of the U.S. Dollar and the Euro as competitors in the currency market is extensive and interesting. The effects of this history on their current value are particularly noteworthy, especially given the current crisis.
The Euro and the Dollar are both strong currencies, leading to minimal variations in the EUR/USD pair. Traders in the Forex market are well aware of this.
How will the elections in the United States change the value of the Dollar?
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The upcoming United States elections on November 5, 2024, are expected to be a significant economic event, potentially impacting the value of the Dollar. The efforts to control inflation in the US have been successful, but the Federal Reserve is hesitant to lower interest rates, citing ongoing uncertainty among American companies, partly due to the upcoming elections.
The outcome of the elections could lead to changes in US politics, affecting the value of the Dollar.
If Biden wins, things would remain as they have been until now, since the government would maintain the line of action it has been taking until now. On the other hand, if Trump won, many things would change in North American politics. Since the former president has a much more aggressive ideology and speeches in diplomatic terms, it is possible that many of the agreements or measures that the Biden government has taken will be modified, affecting the supply of dollars and generating either a stronger or a weaker Dollar.
While the Euro is currently on a bullish trend, potential changes in US policies could alter the dynamics of the EUR/USD pair.
Despite possible fluctuations, it is unlikely that the pair will sustain low profitability for an extended period.
The Euro may face challenges, particularly with the ongoing conflict in Ukraine, while the dollar could strengthen, narrowing the value gap between the two currencies. This uncertainty adds to the complexity of the situation.
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