As the US election approaches it is time to consider hedging your exposure to the USD. As with Brexit, a negative (unexpected) result could significantly weaken the USD. Whereas a positive result may have minimal impact on investor confidence.
If you or your business is worried about currency volatility over the US election period it is possible to lock in the current exchange rates for up to one year with a currency forward.
A few features from the currency markets:
- UK Sterling Index is still bearish in the short and medium term.
- GBP is however gaining some strength against the USD (GBPUSD Chart) as US election result uncertainly reduces investor confidence. Neutral in the short term, bearish in the medium term.
- Against the SEK, GBP (GBPSEK Chart) is bullish in the short term.
Latest currency movements and trends are below:
Richard founded Berry FX in 2015 and has worked in financial services for 18 years most recently at Investors Intelligence, previously acting as prime broker for some of the largest foreign exchange providers in the UK and multi asset derivatives broker at MF Global (Man Financial).
Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.