Bank of Canada: Uncertain Outlook for the US Dollar Prior to the US Election

According to Capital Market of the Royal Bank of Canada, the outlook for the US dollar is uncertain considering the uncertainty before the November US presidential election. Elsa Lignos, a forex analyst, said that if Biden wins the election, the US dollar will not change much as it would mean a continuation of the status quo. Trump is a ‘uncertainty factor’ for the US dollar, as some of his ideas are unfavorable to the dollar, while others are favorable. He may urge the Fed to cut interest rates, which is unfavorable to the dollar, but the high tariffs that may be imposed on imported goods in the US may be favorable to the dollar.