How to capitalize on election-driven market movements
By Team Exness
18 October 2024
Trading insights from the 2020 election.
In 2020, despite Biden leading in most polls, Trump’s love for tweeting, commenting on polls and elections, spreading election fraud rumors, and engaging with supporters created a furore in the markets, moving financial assets more significantly than in 2012 and 2016. Will we see history repeat itself in 2024?
Pre and Post-2020 US Election Volatility
Source: Financial Market Research Desk of Exness, as we gather our data and do the calculations by ourselves.
Key markets to watch
Whether it’s a Republican win for Trump or Democrat victory for Harris, here’s our analysts’ view on how key markets may react towards potential president-elect policies.
Republican victory
- DXY: Potential reaction to protectionist trade stances and potential tariffs on China, with a return of a "strong dollar" policy.
- Gold: Pro-business policies and tax cuts could boost growth, reducing demand for safe assets like gold.
- Oil: Support for oil production may increase supply, potentially lowering crude prices.
- NASDAQ100: Volatility may arise from trade policies, but tech giants could gain from deregulation and tax cuts.
Democrat victory
- DXY: Harris’s multilateral trade approach could bring stability to the dollar.
- Gold: Increased social spending and regulation could depreciate the dollar, boosting gold prices.
- Oil: Environmental regulations may limit oil supply, potentially raising prices in the long term.
- NASDAQ100: Corporate tax hikes and regulations may pressure markets in the short term.
Stable spreads even during election news.
Our proprietary pricing algorithms use real-time volatility to produce tight and stable spreads.
Compared to other brokers, our spreads, although affected, remain tighter and more stable throughout major news events that regularly cause large fluctuations with other brokers.
*Spreads may fluctuate and widen due to factors including, market volatility, news releases, economic events, market open or close, and the type of the instrument.
Take advantage of US election trading opportunities with the best spreads in the market. No debate.
Best spreads refers to average or max spreads offered by Exness, excluding agents’ commission for XAUUSD for the first two seconds after high-impact news, from January to May 2024, compared with five other large brokers.
Election-driven market volatility offers valuable trading opportunities. Staying informed on policy impacts can help you navigate election uncertainty. With the tightest and most stable spreads, Exness offers the best platform for trading during the elections.
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*Average or max spreads, excluding agent commission, for the first two seconds after high-impact news, from January to May 2024, compared against five other large brokers.
**Spreads may fluctuate and widen due to factors including market volatility, news releases, economic events, market opening or closing, and the type of the instrument.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
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