USD riding for a fall if betting markets wrong on Trump
corrects word in 5th paragraph to "fall"
Oct 25 (Reuters) - The dollar might rapidly cede a big chunk of its recent gains if Kamala Harris confounds betting markets and wins the U.S. presidential election, rather than Donald Trump.
Although polls have the race neck-and-neck, betting markets suggest Trump is more likely to win on Nov. 5, and Republicans may also take a majority in the Senate and House of Representatives.
The USD index scaled a 12-week peak of 104.57 on Wednesday, courtesy of the "Trump trade" and "Red sweep" risk.
Four weeks ago, when the Force appeared to be with Harris, the USD index plumbed a 14-month low of 100.15 (Sept. 27).
If Harris does emerge victorious, the likelihood of the Fed skipping an interest rate cut on Nov. 7 or Dec. 18 is likely to fall - to the probable detriment of the dollar.
Harris pushed early voting during a Thursday rally in Georgia - one of the seven swing states set to decide the election outcome.
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(Robert Howard is a Reuters market analyst. The views expressed are his own)
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