Swissquote Bank releases forex baskets, predictive analytics tool for US elections

Swissquote Bank releases forex baskets, predictive analytics tool for US elections

Do not invest more money than you can afford to lose.


Swissquote Bank (SWX:SQN), a Swiss online financial and trading service provider, announced on Wednesday it has launched a new financial opportunity, allowing investors to be better informed when trading in instruments potentially affected by the outcomes of the US elections on the financial markets. Traders can invest in select currencies and stocks which are expected to be most highly affected by the results of the elections. 

In case Clinton becomes US president, Swissquote Bank has prepared for traders a portfolio with stocks from renewable energy, defence, and healthcare sectors. If Trump steps in as president, the bank’s selection includes stocks from international trade and from areas affected by changes in immigration and energy policy.

In addition, the forex bank has developed baskets with forex instruments that it expects will be most highly affected if either Clinton or Trump wins. In the first scenario, traditional reserve currencies such as the US dollar (USD) and Japanese yen (JPY) would perform well, the broker said, while if the second scenario takes course, high volatility is expected on the Mexican peso (MXN), Canadian dollar (CAD) and Chinese yuan (CNH) as a result of Trump’s threats to renegotiate trade treaties.

Swissquote Bank has prepared forex baskets with currencies that are most sensitive to the US elections outcome (scenario 1 – Clinton wins, scenario 2 – Trump wins).

To facilitate traders, Swissquote Bank has made available to them an artificial intelligence (AI) polling solution that represents real-time web opinion metric. It provides information on the changes in opinions expressed on the web that can be used to anticipate the next official polls’ results. The solution is developed by Swiss research center EPFL Social Media Lab.

EPFL Social Media Lab’s AI polling solution provides real-time web opinion data for Clinton and Trump collected from web opinions.
US President nominees Donald Trump (left) and Hillary Clinton.

The US presidential elections will take place on 8 November, 2016. The main candidates to win the elections are Democratic nominee Hillary Clinton and her Republican rival Donald Trump, against whom many high-profile republicans have turned their backs on due to the numerous scandals and blunders he has been involved in. The markets are expected to react big time to the elections, regardless of the outcome. Pre-election debates are already affecting the markets. We’ve seen high volatility in many sectors of the financial markets.

Due to the tight  presidential race, the two candidates have been forced to take on extreme positions on some issues to differentiate themselves.  As a result, different segments of the markets will be more tangibly affected than others depending on who wins the elections.

“For the next few weeks, we anticipate that financial markets will become increasingly sensitive to every move the candidates make, which will increase the effect of the US election’s outcome on global portfolios,” Swissquote Bank head Peter Rosenstreich was cited as saying in a press release.

Swissquote Bank provides online trading, analysis, and financial and information services. The Swissquote Group is headquartered in Switzerland and holds a bank license issued by the Swiss Financial Market Supervisory Authority (FINMA). The company has more than 200,000 retail and institutional clients serviced through its offices in Dubai, London, Malta and Hong Kong.

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