Insights

Why this election could be the perfect storm for trading

By Paul Reid

16 October 2024

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The upcoming US election is one you simply can’t afford to ignore. Market-moving news is pouring in, with Donald Trump’s ambitious economic plans stirring up volatility across major assets. Exness traders are gearing up to capitalize on these changes. If there was ever a time to be a trader, this is it.

Trump’s policies: a market-shaker in the making

Trump’s economic agenda, with promises to eliminate inflation and enforce hefty tariffs, has experts buzzing—and not in a good way. Most economists predict that instead of taming inflation, Trump’s approach could drive prices up, potentially igniting a fresh wave of market volatility.

So far,sixteen Nobel Prize-winning economists have voiced concerns, warning that Trump’s policies could trigger inflation levels as high as 9.3% within just a few years. For traders, this means heightened action across USD pairs, commodities, and safe-haven assets. With Trump stirring the pot, those prepared to trade both sides of the market will find plenty of chances to take advantage.

Get ready to trade these assets

Exness traders know that timing is everything. Several assets will be affected by the coming election, and Exness offers stable and tight spreads that help to maximize a traders performance.

With Trump’s agenda poised to shake up financial markets, here are the assets you’ll want to monitor:

USD pairs

  • EURUSD: As USD faces potential weakness from rising inflation, EURUSD could be set for major swings. Volatility is likely to increase as inflation reports come in, offering frequent trading opportunities.
  • USDJPY: In times of uncertainty, traders flock to safe havens like the yen. Watch for shifts in USD/JPY as the market reacts to Trump’s economic maneuvers and rising risk sentiment.
  • USDCAD: The Canadian dollar’s close link to oil prices and North American trade means USDCAD could see strong moves, especially if tariffs disrupt trade relations and commodity prices surge.

Safe-haven assets

  • Gold (XAUUSD): Known for its strength during inflationary periods, gold is a must-watch this season. Trump’s policies could send investors rushing into XAUUSD as a hedge against a devaluing USD.
  • Silver (XAGUSD): Similar to gold but with a twist—silver’s industrial uses mean it’s also influenced by tariffs on manufacturing inputs. If costs rise, silver could see even more action than usual.

Commodities

  • WTI crude oil (USOIL): Trump’s policies could disrupt oil supply chains and drive up prices, especially if inflation takes off. For those tracking oil, inflation trends and energy policy shifts make USOIL a prime asset to monitor.
  • Natural gas (XNGUSD): A go-to during the winter months, natural gas could also benefit from inflationary trends. Rising energy prices typically lead to gains in XNG/USD, which could prove lucrative during colder months.

USDCNH

  • As Trump zeroes in on China with his tariff threats, USDCNH might experience sharp moves. Traders should watch this pair closely for signs of escalating trade tensions, which could lead to dramatic swings in the exchange rate.

Other forex pairs

  • AUDUSD: Australia’s heavy reliance on China means that AUDUSD could feel the ripple effects of Trump’s policies. Additionally, the Aussie dollar is sensitive to global commodity prices, offering dynamic trading opportunities.
  • GBPUSD: With the dollar potentially on shaky ground, GBPUSD could benefit from a strengthening pound. Political events in the UK add an extra layer of interest, as the pair reacts to USD movements and UK economic updates.

Why traders can’t afford to miss this

Trump’s plans are set to unleash a wave of volatility, and for traders, that’s where the opportunities lie. The beauty of trading with Exness is that you’re not limited to just buying or holding assets—you can short them too. Whether the USD gains or loses ground, there’s potential for profit. As Trump’s policies unfold, the likelihood of frequent and dramatic market shifts grows. Now’s the time to stay on top of the action and trade strategically.

Seize the moment with Exness trading tools

Trading during an election cycle can be intense, but with the right tools, it’s easier to stay ahead of the market. Exness offers a mobile trading app that lets you follow live updates, analyze market data, and act instantly—all from your phone. Don’t let the opportunities slip by; get real-time notifications and be ready to execute trades on the go.

Conclusion

While some people are worrying about rising prices and depreciating savings, others are aiming to offset those potential costs through trading and investing. Whether it’s parking wealth in haven assets such as gold, or shorting sensitive stocks, traders have more options when it comes to economic uncertainty.

Exness is committed to giving traders total agility, so low deposits and instant withdrawals mean anyone can try trading without complication. If trading seems daunting right now, consider warming up with a risk-free demo account. With Exness, you can practice your strategies and get a feel for market movements without risking real capital. Build your confidence, refine your approach, and then jump in when you’re ready. The markets are moving fast, but that doesn’t mean you can’t keep up.

As election day nears, market reactions to Trump’s potential policies will only intensify. Don’t sit on the sidelines—take advantage of the volatility and turn potential market moves into trading opportunities.


This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Author:

Paul Reid

Paul Reid

Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.