The American people have put their trust in the Republican Party, sending a GOP majority to the U.S. Senate. Voters delivered a strong conservative message rebuking the policies and direction of the country at a time when Barack Obama’s approval ratings are sitting at all-time lows. So in the immediate term, what does that mean to the currency markets — for one, the USD rally is likely to resume…
A conservative agenda of getting spending normalized and putting the US on course to tackle it’s huge fiscal problems is a reason for financial markets and particularly the dollar to cheer. Couple that with the fact that interest rates do eventually have to trickle up, the markets knee-jerk reaction was as expected. The question remains if Republicans have learned their lesson from the George W. Bush years and will be ready to respond to a rabid conservative base and disenchanted liberals upset about the direction of the US economy.
The Dollar rallied overnight Wednesday on official word Republicans will be controlling congress, with eyes now set on 2016. Chart courtesy of FXStreet.
I want to congratulate all our candidates tonight,” said RNC Chairman Reince Priebus. “Our party’s principles and message resonated with voters across the country. This was a rejection of President Obama’s failed polices and Harry Reid’s dysfunctional Senate