Currencies Direct

Currencies Direct

March 06, 2012 12:17 ET

Passing the Buck: Will the U.S. Elections Perturb Investors?

The Intense Political Activity, Which Surrounds Any U.S. Election Year, Can Often Affect the Dollar's Value Worldwide, Says Currencies Direct

LONDON, UNITED KINGDOM--(Marketwire - March 6, 2012) - No time to waste. The gap in the number of days between each Republican primary/caucus means the overall campaign schedule resembles a rocknroll bands tour itinerary rather than an important electoral fight for presidential candidacy. But it's not just journalists and political bloggers keeping a close eye on the nominees' on stage performances. Investors and economists from around the world will also be following and reacting to all the latest developments closely: throughout both these sets of Republican nominations and the eventual U.S. elections, held later in November.

According to Currency exchange experts, currencies direct, often both stock and currency exchange markets react to the intense political activity associated with the U.S. elections. As the two candidates begin to trace out new economic and social agendas, the markets often react; subsequently affecting the value of the dollar worldwide.

According to Alistair Cotton, a corporate trader at Currencies Direct: "Studies in the past have alluded to slight changes in the Dollar's exchange rate during an election year. Investor confidence is subject to a candidate's proposed policy agenda and, of course, the final result itself. If a candidate wins by a large margin, the markets tend to react well."

"In 2008, when Barack Obama was elected president, the buzz which surrounded his inauguration certainly boosted the dollar's value; especially when converting British pound."

However, Mr. Cotton is quick to quash any suggestions that the upcoming presidential campaigns are likely to cause any significant changes in Exchange rates:

"Ultimately, the U.S. federal reserve determines the dollar's foreign exchange value based on inflation and interest rate changes, for example. So any changes will be small and probably in reaction to the final vote itself."

About Currencies Direct

Currencies Direct is one of Europe's leading non-bank providers of currency exchange payment services. Since its formation in 1996 Currencies Direct has evolved and positioned from being an innovative service provider of foreign exchange for consumers and high net worth individuals into a dynamic and pioneering 'business to business' fully integrated treasury solution service provider. Head quartered in the City of London (United Kingdom) with operations in Europe, Africa and Asia, Currencies Direct is part of the Azibo Group, a privately owned investment company.

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