Democrats Projected to Retake the House to Deliver a Divided Congress

The Republican Party retains control of the Senate this morning, according to projections, with Republican Ted Cruz wrapping up the night in Texas, to prevent a Democratic blue wave to sweep the country.

For U.S President Trump that’s as good as it gets, with a few more seats in the Senate of little consolation, as the Republican Party coughs up the House of Representatives, America’s suburbia going against the Republicans and the brashness of the U.S President.

The Democrats regain the House of Representatives, according to projections, bringing the U.S President into the purview of the Democratic Party that will likely be looking for blood, the ongoing Mueller investigation into the Republican Presidential Campaign back in 2016 and an investigation into the U.S President’s tax declarations likely to just be the tip of the iceberg.

We can expect calls for a Presidential impeachment to return and for members of the U.S administration to be subpoenaed and, while there will be few surprises to the results of the mid-terms, what’s to come on the American political arena will be of particular influence to the Dollar, the Global equity markets and the global economic outlook, the Republican’s U.S Dollar printing machine now likely to sit idle to bring a 2-year spending spree to an end.

Hopes of a Democratic blue wave failed to materialize through the U.S mid-terms however, the Democrats failing to take some key states including Kentucky and Tennessee.

A choppy morning in the Forex Markets saw the U.S Dollar Spot Index rally to an early morning high 96.46 before hitting reverse, a divided Congress ultimately doing the damage, with the U.S Dollar Spot Index sliding 0.29% to 95.99 at the time of writing.

Looking across at the U.S Futures, there was a positive response to the projected split in Congress, with the Asian markets responding favourably to the outcome, Trump’s desire to wage a trade war with the rest of the world now in question, along with a number of other Republican policies that have jolted the global financial markets.