US dollar set to benefit from Bush's midterm election loss

The midterm elections are expected to have a positive impact on the US dollar as President George W. Bush is forced to curb spending. Legal & General Investment Management recently outlined its case for a rise in the value of the US dollar, which it believes will be between 5%-10% in the next year. It cites the fall in the value of the real trade-weighted dollar over the past few years, falling energy prices this year, the growth renaissance in Japan and Europe and fiscal rectitude as likely factors in the improvement in its current account balance. Andrew Clare, consultant economist...