How has the forex market performed around different US Presidential terms? Read on to discover what history can tell us about the Forex market and the President.
- THE US DOLLAR AND THE PRESIDENT’S PARTY
At first, many traders are surprised to learn that there is rarely a direct, straightforward relationship between the President and forex market performance. But considering that the President represents just one branch of the US government, every currency pair involves (at least) an entire other country’s government, and that many of the most important market developments (cough COVID-19 cough) are entirely outside the control of a single politician, it starts to make more sense that the President is just one of many important factors to consider.
All of that said, there has been a consistent pattern of the US dollar strengthening under Democratic Presidents and generally weakening under Republicans dating back to the 1980s. As the chart below shows, Democrats Bill Clinton and Barack Obama presided over periods where the US Dollar Index generally rose, whereas George H.W. Bush, George W. Bush, and Donald Trump have all seen the greenback move lower under their leadership:
Usd Index Performance By President (Image not shown due to low ratings)
(Image not shown due to low ratings)
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