Economic Waves: U.S. Election and Federal Reserve's Rate Decisions Loom

A pivotal week approaches with the U.S. presidential election and Federal Reserve's interest rate decision. The election cycle has significantly influenced financial markets, particularly through the 'Trump trade.' Investors anticipate volatility regardless of the election outcome, with potential impacts from both candidates' economic plans.

The upcoming week marks a significant juncture for financial markets as the U.S. presidential election coincides with the Federal Reserve's interest rate decision. The impact is seen in the fluctuating 'Trump trade,' a reflection of asset price movements as Republican Donald Trump's campaign gains momentum against Democrat Kamala Harris.

Market participants have observed a rise in the U.S. dollar and a sell-off in Treasuries, possibly driven by strong economic data and an optimistic outlook for the deregulation of the crypto industry under Trump. However, polls remain close, suggesting market volatility irrespective of the election's result.

Investors also eye the control of Congress as a key factor, with potential shifts in asset markets depending on the election outcome, reflecting the contrasting economic strategies of the candidates. Plus, the Federal Reserve's impending decision on interest rates adds another layer of uncertainty.

(With inputs from agencies.)