Midterm elections are Nov 6
The US government is likely headed back into deadlock after the midterms. The Democrats are likely to retake the House but it's far from a sure thing.
TD Securities looks at how the US dollar might react to the election:
"The midterms also bring binary risks to the USD, though the risk is skewed to the downside. A divided Congress, for instance, could see the market start to question how much longer US assets can outperform the rest of the world. A reversal of stimulus is unlikely but the long USD trade is well populated. The USD also runs rich to longer-term valuation models, so growth outperformance is crucial for continued outperformance into year-end. However, if Republicans maintain control of the Congress that would likely reinforce the USD topside into year-end, especially against other reserve currencies like EUR and JPY."
