As the 2024 US presidential election is about to be announced, fluctuations in the foreign exchange market have increased markedly. The election results will not only affect US policy trends, but will also directly affect global financial markets, especially foreign exchange markets.

In recent days, the volatility of the foreign exchange market has increased significantly. EUR/USD and GBP/USDImplied VolatilityReaching the highest level since March 2023, market participants generally adjusted their forex strategies to deal with various potential outcomes. The different candidates represented vastly different economic policies and diplomatic positions, and their expectations of winning the election each injected different momentum into the market.

For example, if Republican candidate Trump wins the election, the market generally expects him to adopt a tougher trade policy. Although this policy may stimulate US economic growth and attract foreign capital inflows, thereby boosting the US dollar, its potential protectionist tendencies may also trigger international trade tension and have a negative impact on the US dollar.

Conversely, if Democratic candidate Harris wins the general election, the market may be concerned about his fiscal stimulus policies. Although these policies are designed to drive economic growth, they may also lead to higher levels of inflation and debt, thereby putting pressure on the US dollar exchange rate. However, if Harris wins more support in Congress, his policies may also have a positive impact on the US economy, thereby boosting the US dollar exchange rate.

Currently, the implied volatility of the options market is rising, reflecting the high level of uncertainty among investors about the election results. Many investors use options trading to hedge their risks, further increasing market volatility. Furthermore, the election results will also affect the exchange rate of the US dollar with other major currencies. In particular, if Trump pursues a tougher trade policy, other countries may sell off the dollar, causing the dollar to depreciate. In contrast, if Harris is elected and promotes international cooperation, it may benefit the US dollar's international status.

It is worth noting that in addition to the election results themselves, uncertainties in the election process will also have an important impact on the market. For example, a stalemate election may lead to high volatility, while the gradual implementation of post-election policies may lead to new market re-evaluations.

Overall, the impact of the US election on the foreign exchange market is complex and multifaceted. Investors should pay close attention to election developments, adjust strategies and manage risks in a timely manner. In this uncertain time, sound investment strategies and risk control are particularly important. As a one-stop integrated trading platform, 4E supports nearly 20 currency trading pairs, including the US dollar, the euro, the British pound, the Japanese dollar, the Australian dollar, the New Zealand dollar, the Canadian dollar, and the Swiss franc, and provides a two-way long and short trading service with up to 1,000 times leverage, making investors more flexible in dealing with market fluctuations. They only need to hold USDT to trade anytime via mobile phone.

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