Financial markets’ volatility is likely to increase significantly as we enter a straight line towards the presidential election in the United States. From this moment on, everything else will pale in importance when compared to any news related to elections.
Unlike other elections, this year, the road to the vote is paved with three different debates. Moreover, there is one debate between vice-presidents too.
Everything to Know About the Debates
Starting with today, there is a debate every single week until election day. The first one takes place in Ohio and consists of a ninety-minute long debate where the candidates have fifteen minutes to discuss topics chosen by the moderator. The topics, however, are known in advance by each candidate so it is likely that they have prepared answers. Anyways, like in any debate, expect some sparkling answers, especially considering Trump’s temperament.
Fast forward one week, and the two vice-presidents have a debate in Salt-Lake City, Utah. This debate follows a similar path with the one mentioned earlier, with the difference that the ninety-minutes time will be split into ten minutes segments.
The debate between the two vice-presidents has the chance to be at least as interesting as the one between the two main candidates. As a former vice-president, Biden knows very well what the post entitles and will train Kamala Harris well. On the other hand, Pence is active on the job for the past four years and comes with a hands-down experience.
On October 15th, the second debate between the two candidates took place in Miami, Florida. This time the event takes place in the form of a town hall event, and members from the local community have the chance to ask questions. In other words, the element of surprise exists, and it will be interesting to watch the two candidates’ on the spot reaction.
The third and last debate takes place in Nashville, Tennessee, on October 22nd. By this time, we will already have an idea how the polls moved, and this is likely to be the most tensed debate of them all.
One important thing to consider for the ones living in Europe or other time zones – all three presidential debates are scheduled to start at 02:00 AM London time. In other words, just when the currency market is most illiquid, and the most important financial center is closed.
Therefore, volatility is likely to increase more than usual, with unusual wide spreads too.