The upcoming presidential election in the United States is increasing investor nervousness. They are betting on the US dollar as a low-risk and very liquid asset. In times of growing uncertainty, investors tend to be more risk-averse than ever.
The US dollar strengthened against a basket of other major world currencies last week. It reflects the growing nervousness of investors before the US presidential election, which takes place on Tuesday, November 3. According to analysts, investors are more nervous than usual, because they have no clue as to who can meaningfully estimate who will sit at the White House in the next four years.
They remember the year 2016 when the polls favored Hillary Clinton, but in the end, Donald Trump became president. The situation is repeating to some extent this year, because even this time the Democratic candidate, Joe Biden, is more popular in the polls than Donald Trump. But the numbers of voters whose votes the candidate must get are important. And from this point of view, it will again be a very tight and exciting race until the last second.