07/11/2018 - US Midterms Weigh Heavy on US Dollar

USD

The Dollar lost ground yesterday ahead of the US election results that are being seen as a referendum on Donald Trump's presidency in what could be the most consequential midterm elections in a generation. The currency weakened against almost all major peers due to the potential for change in the House that would see Trumps republicans lose full control of congress.

The nationwide elections come halfway through Mr Trump's four years in office and follow a divisive campaign. Voter turnout is expected to be high after Trump attended three rallies on the final day of campaigning.

Republicans could build on their agenda and that of President Trump by maintaining their hold on both the Senate and the House of Representatives. But if the Democrats take control of one or both chambers, they could hinder or even reverse Mr Trump's plans. Pollsters suggest Democrats may win the 23 seats they need to take over the House of Representatives. Nevertheless, the Democrats are expected to fall short of the two seats they need to win control of the Senate.

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