Wall Street has so far been comfortable with their assumption that Democratic Party nominee Hillary Clinton will win the forthcoming presidential election. They are yet to price in a potential Donald Trump victory. As such, if he manages to score a “good performance” during the Monday night debate, he could spark a rally in safe haven assets like gold, Japanese Yen and German Bunds. Though Clinton continues to lead the polls, issues concerning the state of her health, has seen her lead narrow in past weeks. With nearly 34.00% of likely voters saying their decision will hinge on the outcome of the three presidential debates, outperformance by one candidate has the potential to impact short-term volatility and the broader trends in risk assets.
Prepare for a Volatility Spike
Daily Analysis - 26/09/2016