Currently, the results of the US midterm elections are being reported one after another. Republicans are reported to have the upper hand in the House of Representatives, but surprisingly the Democrats seem to be putting up a good fight. The Senate remains contested. It has been pointed out that in states with a small difference in votes, the possibility of being brought to the final vote is still unclear. In any case, as long as the Republican Party does not suffer an unexpected defeat, a twisting phenomenon between the Biden administration and Congress will emerge. It is expected that aggressive economic measures will be difficult to pass through Congress. However, the impact of the policy will also be long-term, and it is unclear whether the dollar will react in the way some markets say it will. It should be noted that the market that reacted with an image is likely to swing back.
Today, it is difficult to move ahead with tomorrow’s US consumer price index. However, NY Fed President Williams and Richmond Fed President Birkin are scheduled to give lectures, and the market is likely to react if they mention future interest rate hikes and outlook for terminal rate levels.
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Today is a basic wait-and-see attitude. If it enters, it is assumed that it will be only ultra-short-term trade.
