Art Laffer expecting ‘smooth and not chaotic’ election process
Former Reagan economist Art Laffer weighs in on Americans’ worries about the presidential election process.
The recent direction of the U.S. dollar points to former Vice President Joe Biden defeating President Trump in the upcoming election, but a lot can change before Nov. 3.
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The U.S. Dollar Index, which tracks the dollar against a basket of its peers, has climbed 0.9% since its July 31 close.
A weaker dollar in the three months ahead of the election typically favors the incumbent party while a stronger dollar has been good news for the challenging party. The index has correctly predicted seven of the last eight election winners when using that measure, according to Ryan Detrick, chief market strategist at LPL Financial.
“As we saw back in March, when trouble hits, the U.S. dollar tends to do well, as investors flock to the safety of the world’s reserve currency,” Detrick wrote. “When things are calm, the dollar tends to weaken, which favors riskier assets.”
BIDEN WIN COULD ACCELERATE DOLLAR'S DROP: GOLDMAN SACHS
The U.S. Dollar Index surged by 10% from March 9 through March 20 amid a global shortage as governments ordered lockdowns to slow the spread of COVID-19. The index has since fallen 8.2% as the global economy has begun to slowly emerge from its sharpest downturn of the post-World War II era.