{"id":39832,"date":"2022-11-08T09:53:19","date_gmt":"2022-11-08T07:53:19","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=39832"},"modified":"2025-10-17T09:16:01","modified_gmt":"2025-10-17T06:16:01","slug":"markets-brace-for-us-mid-term-elections","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/en\/markets-brace-for-us-mid-term-elections\/","title":{"rendered":"Daily Key points: Markets brace for US mid-term elections"},"content":{"rendered":"\n

The USD continued to weaken on Monday against its counterparts in the aftermath of the release of the US employment report for October on Friday, while US stockmarkets continued to gain. On a\u00a0 fundamental level we note the midterm elections that could shift the market\u2019s opinion as well, as they may affect the US Government\u2019s fiscal plans. It should be noted that the midterm elections were usually considered to be a vote of protest, a reality check if you prefer, for the incumbent President. For the time being the Democrats control both houses of Congress, the Senate and the House of Representatives, yet Republicans seem to be positioned to take control of the Senate. Such a scenario may leave the US with a split Government in other words, a Democrat President and a US Congress with a Republican veto. The issues which seem to be hot, albeit are not the only ones, are the economy and the high level of retail prices, abortion rights, immigration, Joe Biden\u2019s presidency so far and its future and to a lesser degree education, climate, public safety and gun control. Should the Republicans be able to take control over Congress, they may put the brakes on Joe Bidens\u2019 extensive fiscal plans, which in turn could increase the possibility of the US economy entering a recession. Across the pond we note that the pound was able to gain against the USD, the EUR, JPY and CHF in a sign of a broader strength, yet the market\u2019s attention may still be on the prospect of a deep recession for the UK economy. It should be noted that next week UK finance minister Jeremy Hunt, is expected to make the autumn statement and is expected to announce spending cuts and possibly substantial tax hikes. It was characteristic that BoE\u2019s chief economist Hugh Pill stated that a tight fiscal budget could weigh on the UK economy even more than what the central bank expects and may alter BoE\u2019s policy intentions. Furthermore, we would note that UK house prices contracted for a second month in a row and at the fastest rate since June 2021 in another possible sign of lack of demand for the UK housing market which intensifies worries further for the outlook of the UK economy.\u00a0<\/p>\n\n\n\n

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