Election Results Boost U.S. Dollar in Currency Trading

by Trader Rich

Greenback gains in forex tradingThe U.S. dollar is gaining in currency trading on the FX market this morning. While poor economic data in Europe are contributing to the drop by the euro, another factor comes from yesterday’s presidential election results.

There is speculation that the victory by Barack Obama will speed economic recovery in U.S., and that is helping the greenback a bit in forex trading on the currency market. Bloomberg reports on the optimism felt by some dollar bulls:

“Obama’s clear win and the Democrats’ gains in Congress are dollar-positive, no doubt about it,” said Michael Klawitter, a currency strategist at Dresdner Kleinwort in Frankfurt. “Interest-rate spreads will move strongly in favor of the U.S., where the scope for aggressive cuts is limited.”