Nordea analysts who reiterated the relationship, closer than ever, between the President of the United States of America and the most monitored quotation on the currency market confirmed this.
More specifically, the experts attempted to predict the future trend of the euro-dollar exchange rate, which in about 9 months will face the long-awaited US 2020 elections. The way in which the election consultation will impact on the price will be carefully monitored by the entire market.
Euro dollar exchange rate and Donald Trump: what relationship?
According to experts, the outcome of the upcoming presidential elections will have a decisive impact on the listing of the EURUSD. Currently, they said from Nordea probability of victory for Donald Trump are going up, which is good for the greenback.
“Democrats are busy obstructing each other while the wind is blowing in Trump’s tail seems to have no limits. For this simple reason we are continuing to foresee further falls on the euro dollar exchange rate “.
On the other hand, the single currency went through a difficult phase: sales became more evident after the disappointing macroeconomic data from Germany and in the wake of fears related to possible USA duties.
Perhaps, the experts continued, things could improve slightly this week with the PMI indices, although it is unclear how these will be affected by the coronavirus.
At the moment, the EURUSD price is trading just above 1.08, a lot far from 1.12 hit in early January. Compared to those highs, the descent was sudden.
For experts, if Trump’s chances of winning rise, things will only get worse for the euro-dollar exchange rate.