NEW YORK (Forex News Now) – The United States will be having its elections for various seats in Congress on Tuesday, and online FX trading could very well be impacted by its outcome.
During the election process, voters will turn out to decide the fate of both the House of Representatives and the Senate. Because of this, future spending and monetary direction could be influenced in quite a different way than it has been over the last few years.
Most political analysts in the United States tend to agree that the House of Representatives will change hands, going from the Democratic majority to the Republican minority. Not only does this matter to online FX trading because of a “different direction”, but the House of Representatives is where all U.S. government spending proposals are originated.
As the elections season dragged on this year, most of the challengers have campaigned on fiscal restraint and budget cutting, regardless of party. This shows that there could be a massive change in the way the United States chooses to spend, and more importantly, borrow.
The federal deficit not only makes waves from time to time in online FX trading, but also with the general public. This is one of those times. It appears that real change could be coming to the Congress this year, as Americans have angrily protested government waste more than any time in living memory.
What could really rock the world of online FX trading is if the Senate switches control to the Republicans as well. While it is projected to stay in Democratic control, the projections are generally stated to be 52-48, in favor of Democrats. However, with just a few surprises, the Senate will be Republican controlled, and the currency markets will have to adjust to this unanticipated change of direction for the Americans.
The reaction to this change might be muted until after the FOMC announcement on Wednesday however, as the world also wants to see what the Federal Reserve is going to do about quantitative easing as well.