DXY - Does 1972 and 1976 = 2016 and 2020?

1 Kas 2020

The USD tends to get a bump after a U.S. Presidential election but recall that the USD put in a massive top 6 weeks after the 2016 election. The same thing happened when Nixon was elected in 1972. In the 4 years that followed, the USD dropped sharply and rebounded. Sound similar? In 1976, the USD held up for a month after Carter was elected before getting absolutely demolished over the next 2 years as inflation exploded. Now that’s a story I can buy. Regardless of who wins next week, it’s easy to imagine many throwing in the towel on the ‘inflation trade’ if the USD were to hold up for another month…just when it’ll be time to put that trade on in size. This was originally published at scandex.com/2020/10/market-update-10-27-u-s-election-preview/.